Energy Bill Discount Scheme (EBDS)

A cut-off point for businesses and organisations to access the Energy Bills Discount Scheme (EBDS) is fast approaching.

Applications for EBDS support must be made by or on Tuesday July 25, with the discounts remaining in place until April of next year.

These reductions are applied automatically when energy bills are produced, over that time, and are subject to price thresholds.

The EBDS is in operation from April 1 to 31 March 2024, having replaced the Energy Bill Relief Scheme, which had been in place since October 2022.

Rather than capping prices, the EBDS offers gas and electric at a wholesale rate, which is intended to bring down costs for non-domestic customers.

This can be up to £6.97 per megawatt hour (MWh) for gas and as much as £19.61 for electricity bills. The gas threshold goes up to £107 MWh, with electric at £302 MWh.

Those with outlay below the threshold (£107 MWh gas, £302 MWh electric) won’t qualify for the scheme, which is only available in Great Britain and Northern Ireland.

Sectors who can obtain a larger discount are Energy and Trade Intensive Industries (ETII), but only for 70 per cent of their usage.

The maximum discount still applies, but reflects a difference between actual costs and a wholesale price threshold of £99 MWh (gas) and £185 MWh (electric).

A higher level of support is also available for heat networks with domestic-end customers, so that they can benefit from savings on their energy use.

ETII and heat network consumers must apply for their discounts, For more information and to check eligibility, just click here. 

The latest scheme documents for non-domestic energy customers applying for EBDS additional support for ETIIs and heat networks can be accessed HERE.

Background

The UK Government introduced the Energy Bills Discount Scheme (EBDS) to support certain businesses in Great Britain and Northern Ireland.

It was aimed at those who consume natural gas/biomethane, or electricity supplied by wire or pipe from a license-exempt supplier (Qualifying Energy Providers (QEP).

For this, they pay a price that is pegged to wholesale energy prices (eligible energy).  These businesses are commonly recognized as Non-Standard Cases (NSC’s).

Examples of NSC’s include businesses, voluntary sector organisations, such as charities, steelmakers, recycling plants and public sector organisations.

The latter is inclusive of schools, hospitals and care homes, manufacturers and large chemical plants and those that provide critical national infrastructure.

The government will provide a series of relief payments to ensure that non-standard cases (NSCs) receive support.

This reflects what they have paid for wholesale energy during the relevant period. Support will NOT be provided automatically under the NSC scheme.

The applications portal for Energy and Trade Intensive Industry (ETII) sectors has been open since 26 April 2023.

Eligible ETII organisations have 90 days from the scheme introduction date to apply for the higher support.

The Energy Bills Discount Scheme (EBDS) - The non-standard cases (NSC)

In alignment with the main EBDS, the non-standard cases scheme is made up of three differing levels of support:

1. The Baseline Discount provides some support with energy bills for all eligible businesses that have a non-domestic contract with a licensed energy supplier in Great Britain and Northern Ireland.
2. The Energy and Trade Intensive Industries (ETII) discount provides a higher level of support to businesses and organisations in eligible sectors – Eligible businesses will need to apply for this support. Registration via the Government portal can be accessed HERE.
   • Non-standard customers who believe that they meet the criteria for ETII support and cannot see their energy provider listed when prompted in the application process, should contact support@ebds.beis.gov.uk
3. The Heat Network discount provides a higher level of support to heat networks with domestic end consumers – you need to apply for this support
   • If you’re eligible for the higher level of support for heat suppliers, but receive your energy from a licence-exempt supplier, you can contact BEIS by emailing: ebrs.nonstandardcases@beis.gov.uk, who can your assess eligibility for this support.

To receive the higher levels of support available to ETIIs and Heat Networks, a customer must go through a separate process of certification to show that it meets the applicable criteria.

If successful, the Department for Energy Security and Net Zero (DESNZ) will provide the customer(s) and their QEP/ licence-exempt supplier with a certificate, which acts as confirmation of their eligibility.

What are the key points of information?

• Further guidance, applications process, scheme terms and exclusions on the EBDS for Non-Standard cases in GB and Northern Ireland can be sourced HERE.
• The detailed guidance document provides a detailed outline of the Energy Bills Discount Scheme for Non-Standard Cases.
• ETII letter ‘Get Ready’ letter which includes information on the documentation required to support the application.
• For more information on the Energy and Trade Intensive Industries Discount and how to register, please visit Apply for the Energy Bills Discount Scheme support for Energy and Trade Intensive Industries (ETIIs)
• ETII Discount Scheme: Your UK business or organisation should also be able to prove that at least 50% of its revenue is being generated from UK-based activity within eligible SIC code sectors.
• The Energy Bills Discount Scheme (EBDS) discount rates for fixed and default / variable contracts can be sourced HERE
• Heat networks will need to register to be entitled to the higher level of support. For more information on heat networks support, please visit: https://www.gov.uk/guidance/energy-bills-discount-scheme-heat-networks-support.
• If you cannot apply online, phone the EBDS customer support team:

Email: support@ebds.beis.gov.uk
Telephone: 030 0400 5251
Monday to Friday, 9am to 5pm
Find out about call charges.