The government have recently announced the Energy bill relief scheme, providing vital financial help for businesses in paying their energy bills. Our GHM Energy team have put together this useful guide about the scheme and answer some of your most common questions.
Energy Bill Relief Scheme
The Energy Bill Relief Scheme will see a government discount on wholesale gas and electricity prices for all non-domestic customers, like the Energy Price Guarantee for households.
It will apply to fixed contracts, deemed, variable and flexible tariffs and contracts on or after 1 April 2022.
The energy usage will be from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will start firstly in October bills, typically received in November.
What if you are out of contract now?
If you are out of contract, the government has advised businesses to set up contracts which will automatically have the appropriate reductions to your energy price for the duration of the scheme.
Those on out-of-contract rates will only receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period. The maximum discount is likely around 40.5p/kWh for electricity and 11.5p/kWh for gas, subject to wholesale market developments.
What if you’re about to sign a new fixed-price contract?
You can still sign a fixed-term contract now, as the relevant price reduction will be automatically applied to your bill by your supplier. If you are sitting on the out-of-contract rates, you will still get support from the scheme but will likely pay more than if you are in a contract.
What if you are up for renewal after the scheme?
The energy rates for businesses are not forecasted to see much relief in price until summer 2025. If you are up for renewal after the scheme ends, please get in touch, and we can assess the market and recommend the best time for forward-purchase your next energy contract.
What if you signed before the 1 of April?
If you signed before 1st of April, you have missed the cut off and might not be eligible for the support scheme due to the business not being exposed to the recent wholesale price rises.
Will I have to apply for the discount?
No, the discount will automatically apply to bills from November onwards. You will not need to do anything or contact your supplier if you are eligible.
We understand customers may have further questions; please give our energy team a call on 01865 367111 to discuss your account.