Unless you’ve been sleeping under a rock there is an energy crisis! Luckily there is now energy support, for the business owner out there.
For the past few months, you’ll noticed that Gas and Electric prices are soaring. Whilst there is some support out there, (check out LoveAndovers post here) business owners, will not benefit from the Ofgem Price caps. Read on to learn what is out there to help you and your business.
There will be a new 6 month scheme, eloquently titled, the ”Energy Bill Relief Scheme: help for businesses and other non-domestic customers for businesses and other non-domestic energy users” . It’s something that will be reviewed over a 6 month period.
What is the Energy Bill Relief Scheme?
The 6 month scheme will provide discounts on non-residential bills between 1 October 2022 and 31 March 2023. It will be for businesses, charitable/ volunteer organisations and state funded places suchs as care homes and educational centres, based in the UK.
For all non-domestic energy users in Great Britain this government supported price has been set at:
- £211 per megawatt hour (MWh) for electricity
- £75 per MWh for gas
A comparable rate will be set shortly for Northern Ireland.
For comparison, wholesale costs in England, Scotland and Wales for this winter are currently expected to be around:
- £600 per MWh for electricity
- £180 per MWh for gas
As you can see the comparison is quite substantial, infact, borderline crazy. The difference between the wholesal cost vs what the government will cap the energy at, is huge!
How it works
The process will be automated, the suppliers will give the discounted amount and any difference between the discounted price vs wholesale price will be paid by the government, to the suppliers.
If you are in a fixed contract, if the fixed amount is lower than the government amount, then no discount will be offered. if the price is higher than the government discounted amounts, then the discount will apply.
Other Energy Support Available
There are other support mechanism available:
- the Industrial Energy Transformation Fund (IETF). This is grant that provides funding for businesses that use high energy, which is provided to help cut energy bills, if they invest in low-carbon or more energy efficient tech.
- Search for local schemes that provide advice and grants these are often localised offers/grants/funding that is provided by local authorities. See what available, by clicking the link above.
- UK Business Climate Hub This provides methods to help cut emissions and save money. You must be a business, based in England for this.
There are other ways to help reduce your bills. From simply changing supplier to getting lighting that only turns on when you’re actually in the room. For help/advice/support or if you have a story you’d like to get out, please get in contact adam@loveandover.com
