A cap on the unit cost of gas and electricity expires in March, and a new government programme is set to replace it.
The new energy bill support plan for UK businesses has officially been unveiled by Chancellor Jeremy Hunt.
Instead of a fixed price, a new system would give a reduction on wholesale gas and electricity costs.
This will be the replacement of the present Energy Bill Relief Scheme on April 1, 2023. For more information on the current Energy Bill Relief Scheme, visit our article, 'Energy Bill Relief Scheme: What this means for your business.'
The Energy Bills Discount Scheme:
The revised scheme will be implemented with the start of the new tax year, which will run from April 1, 2023 to March 31, 2024.
With this scheme, a number of non-domestic consumers will now be eligible for a per-unit reduction on their energy bills from April 2023 to March 2024.
If wholesale prices exceed a particular price threshold, the relative discount will be applied. These maximum discounts have been set for the majority of non-domestic energy consumers in the United Kingdom and Northern Ireland:
Electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
Gas - £6.97 per MWh with a price threshold of £107 per MWh
Am I eligible for the new scheme?
The new scheme, like the previous, will be open to anybody with a non-domestic contract, including:
Businesses
Non-profit organisations such as charities
Organisations in the public sector, such as schools, and hospitals
How do I get the new discount?
Your energy provider will instantly apply the savings to your energy bill. The reduction should begin in May 2023, as that is when you will be paid for energy used in April.
How can PSP help?
Our team at PSP have over 25+ years of experience within this field and can provide businesses practical solutions on how to improve practices and reduce costs on significant areas across the business.
Here at PSP, we can identify key areas where you can significantly lower costs and help you improve energy efficiency as well.
For more information on our saving services, visit our Savings page.
If you are interested in our services, get in touch with a member of our team today at 03330 156 289. Alternatively, you can send an email to info@placesupportpartnership.com.