Page 10 - Growth Plan Newsletter

Non-domestic customers

Two days before Mr Kwarteng’s statement, the BEIS set out its Energy Bill Relief Scheme (EBRS) for non-domestic
energy users. While this drew on the approach used for domestic customers, the Scheme contains many differences
reflecting the different features of the commercial energy markets:

• With very few exceptions, the EBRS applies to all non-domestic customers, both commercial and non-
commercial, who are:
o on existing fixed price contracts agreed on or after 1 April 2022;
o signing new fixed price contracts;
o on deemed/out of contract or variable tariffs; or
o on flexible purchase or similar contracts (mainly the largest users)

• The EBRS targets the wholesale element of non-domestic unit prices, bringing them down to government
supported price levels for the period from 1 October 2022 to 31 March 2023. However, there is a limit to the
maximum reduction/discount per unit the Scheme provides.

EBRS Unit Charges

Gas Electricity
Pence per kilowatt hour Pence per kilowatt hour

Support level 7.5 21.1

Maximum discount 11.5 40.5

In its Wednesday statement, the BEIS said that the current estimated wholesale costs for this winter are
about 18p/kWh for gas and 60p/kWh for electricity.

• A review of the EBRS is promised in three months’ time, with the focus on ‘the most vulnerable non-domestic
customers. This yet to be defined sector will benefit from ongoing support after the EBRS comes to a close.
Thus, in theory, most non-domestic customers will pay full market energy costs from April 2023.

• Support matching the level of the EBRS will be provided for non-domestic consumers who use heating oil,
LPG or other alternative fuels.

• In Northern Ireland, a separate but similar scheme to the EBRS will be set up.

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