The government unveils new 'Energy Bills Discount Scheme' for businesses

A new energy scheme for businesses, charities, and the public sector has been confirmed this week ahead of the current Energy Bills Relief Scheme ending in March. The new ‘Energy Bills Discount Scheme’ will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024. 

SFHA had previously written to the Department for Business, Energy and Industrial Strategy calling for the Energy Bills Relief Scheme to extend beyond April 2023 for social housing providers, including for non-domestic contracts which are used to supply energy to domestic properties. Along with the National Housing Federation and Community Housing Cymru, we also wrote to the Chancellor to highlight gaps in the current support schemes, including the particular challenges facing ‘heat with rent’ and heat network customers.  

Under the new scheme, which runs from 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices. A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. 

As part of the announcement, it was also noted that the government is still developing options to ensure domestic consumers on a non-domestic meter, including those in park homes and heat networks, continue to benefit from support in line with other domestic users after April. The Chancellor has also written to OFGEM asking for a progress update on their review of the non-domestic market and whether further action is action is needed to secure a well-functioning market for non-domestic customers. 

Further information on the details of new scheme can be found here. SFHA members are also invited to submit any feedback on the impact of these changes to Cassandra Dove, SFHA Research and Policy Lead (cdove@sfha.co.uk).