Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

What does the UK Government’s Energy Relief Scheme mean for your organisation?

by October 4, 2022
October 4, 2022
What does the UK Government’s Energy Relief Scheme mean for your organisation?

During the autumn Mini-Budget, Chancellor of the Exchequer, Kwasi Kwarteng, announced the Energy Bill Relief Scheme.

The scheme aims to support businesses with the increasing cost of energy use and protect them against the rising price of wholesale energy. Under the scheme, organisations will receive a discount on the unit price of their gas and electricity, both of which are calculated by comparing the estimated wholesale portion of the unit price that would be paid this winter against a baseline Government supported price.

What does the Energy Bill Relief Scheme mean for my organisation?

The scheme applies to businesses, charities, and public sector organisations of all sizes who are:
• On a fixed price contract signed on or after 1 April 2022
• On a deemed or variable tariff
• On a flexible contract

The Government supported price has been set at £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas. To ensure consistency between the domestic and non-domestic schemes, the supported price is based on the implied wholesale element of the Energy Price Guarantee for domestic customers.

This scheme will last for 6 months, with the discounts being applied between 1 October 2022 and 31 March 2023. The Government says it will review the scheme after 3 months and decide then if it will continue into April 2023 and beyond for what it calls “vulnerable businesses”.

How will the scheme work?

You do not need to sign up to the scheme or take any action, the reductions, which will be in pence per kilowatt hour (p/kWh), will be applied to bills automatically by your supplier. It is expected that businesses should see the savings in their October bills, which are typically received in November.
Gas and electricity suppliers will apply the reductions to the bills for all the eligible businesses and the Government will then compensate suppliers for the reduction in wholesale gas and electricity prices.

How do I know if I am eligible for the scheme?

If you have an existing fixed price contract on or after 1 April 2022 you will benefit from the scheme and get support if the calculated wholesale price you are paying is above the Government support price.

However, if your fixed tariff price is less than the Government supported price, you will not be eligible for the scheme.

If you are about to sign up to a new fixed price contract, the price reduction will be automatically applied to your bill.

If you are on a default or variable tariff contract, and want to remain on it, you will get the reduction, subject to the ‘maximum discount’. The maximum discount you will receive will be calculated by comparing the Government supported price with the average of the expected wholesale price for delivery across the 6 months of the scheme. The Government is encouraging businesses to safeguard their energy bills by moving to a fixed tariff, meaning they will be guaranteed the Government supported price.

If you are on a flexible purchase contract, your price reduction will depend on the difference between your monthly weighted average baseload price and the Government supported price.

If you signed a fixed contract before 1 April 2022, you will not have experienced the rise in energy costs many are facing and therefore will not be eligible for the scheme.

If you get your energy through a landlord, heat network or energy service company, the Government has stated they expect organisations to pass the benefits of these schemes to the end user.

Final thoughts

Despite the Government mentioning energy efficiency in their energy package announcement, they have not given enough guidance on how businesses can improve their energy efficiency and if any support will be provided to help, leaving organisations to seek and implement their own measures.

Read more:
What does the UK Government’s Energy Relief Scheme mean for your organisation?

0
FacebookTwitterGoogle +Pinterest
previous post
UK businesses plan to boost business travel spend by 50% or more
next post
Google UK staff earned average of more than £385,000 each in 18 months

You may also like

Young parents and over-50s will be beneficiaries in...

March 12, 2023

Fuel tax cut in UK among lowest in...

August 1, 2022

The Future of Wyndham Timeshares: Industry Experts Predict...

February 16, 2024

David Beckham Sells Stake in Troubled CBD Venture

February 19, 2024

Can You Have a Joint ISA Account? Everything...

March 28, 2025

Business Owners Criticise Tax Hikes, Urge Chancellor Not...

November 22, 2024

Q&A with Donato Tramuto: Insights on Leadership, Innovation,...

July 2, 2024

UK ditches company working time rules in further...

November 8, 2023

HMRC doubles payouts to tax whistleblowers amid calls...

November 20, 2024

HMRC customer service deteriorates to “all time low”

February 28, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • FLASHBACK: Musk accused Trump, GOP leaders of not wanting to cut spending — here’s where they said they would

      June 7, 2025
    • ‘Right down the line’: Medicaid reform in ‘big, beautiful bill’ divides lawmakers by party

      June 7, 2025
    • FAST distribution and IA

      June 7, 2025
    • Why Independent Digital Platforms Are Gaining Ground Among UK Entrepreneurs

      June 7, 2025
    • Is Decentralisation the Future of Online Services in the UK?

      June 7, 2025
    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,560)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved