By Anna Jordan on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
UPDATED: The Government has announced a new energy support scheme that cuts financial support for business energy costs by 85 per cent from April 2023 until March 31, 2024.
Chancellor Jeremy Hunt has said that the Energy Bill Relief Scheme, running until the end of March 2023, will cost £18bn. He added that the scheme was always going to be “time limited and intended as a bridge to allow businesses to adapt”.
The new 12-month energy support scheme will be capped at £5.5bn (based on estimated volumes) and “strikes a balance between supporting businesses over the next 12 month and limiting taxpayers’ exposure to volatile energy markets.”
Hunt announced its replacement, the Energy Bills Discount Scheme, “giving businesses the certainty they need to plan ahead”.
What is the Energy Bills Discount Scheme?
The Energy Bills Discount Scheme is open to businesses who are:
On existing fixed price contracts that were agreed on or after December 1, 2021
Signing new fixed price contracts
On deemed / out of contract or standard variable tariffs
On flexible purchase or similar contracts
On variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only)
Businesses will receive