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Government announces changes to support for businesses on energy

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The Government has announced changes to the Energy Bill Relief Scheme for non-domestic users in Great Britain and Northern Ireland.  The current EBRS runs until the end of March 2023. Businesses have seen their unit prices for gas and electricity capped at a fixed level. From April 2023, customers will receive a discount. Under the new Energy Bill Relief Scheme, eligible non-domestic consumers will now receive a unit discount of up to £6.97/MWh unit discount to their gas bill and a unit discount of up to £19.61MWh to their electricity bill during the 12-month period from April 2023 to March 2024, above a threshold level of £107/MWh for gas and £302/MWh of electricity.  The discount will be available to those:

o On existing fixed price contracts that were agreed on or after 1 December 2021
o Signing new fixed price contracts
o On deemed / out of contract or standard variable tariffs
o On flexible purchase or similar contracts
o On contracts paying energy costs above a price threshold

Customers do not need to take action or apply to the scheme to access the support. Support will automatically be applied to bills by your supplier. There will be additional support for energy and trade intensive industries. Businesses may need to apply to be eligible for this greater support, and details will be released in due course.  A list of sectors eligible for the higher levels of support is here. To be eligible for the higher levels of support, the sector must be in the top 20% of sectors by energy intensity, or top 40% of sectors by trade intensity.

The full factsheet on the new Energy Bill Relief Scheme can be found below.

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