Plans to help cut energy bills for businesses

UK Government Energy Bill Relief Scheme

New support for households, businesses and public sector organisations facing rising energy bills in Great Britain and Northern Ireland has been unveiled. It's hoped it will support growth, prevent unnecessary insolvencies, and protect jobs.

Through a new government Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices.

This will be for all non-domestic customers whose current gas and electricity prices have been significantly inflated in light of global energy prices.

The scheme will be available to everyone on a non-domestic contract including:

• businesses
• voluntary sector organisations, such as charities
• public sector organisations such as schools, hospitals and care homes

Key information

• It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts
• It will apply to energy usage from 1 October 2022 to 31 March 2023
• It will run for an initial six-month period for all non-domestic energy users
• The savings will be first seen in October bills, which are typically received in November

The level of price reduction for each business will vary depending on their contract type and circumstances.

The government will provide a discount on your gas and electricity unit prices.

To calculate your discount, the estimated wholesale portion of the unit price you would be paying this winter will be compared to a baseline ‘government supported price’ which is lower than currently expected wholesale prices this winter.

How you will get the reduction

The support will be automatically applied to all eligible bills. You don't need to take action or apply to the scheme.

The savings for energy used in October will be seen in your October bills, which would usually be received in November.

The UK Government has published guidance on the Energy Bill Relief Scheme. It details eligibility, how it works and how businesses will get the reduction. There are also case studies to show how it will work in practice.

Find out about the Energy Bill Relief Scheme (EBRS) for non-domestic customers and how you can get support this winter.

Further information

The UK Government will publish a review into the operation of the scheme in three months’ time, to inform decisions on future support after March 2023.

Read the full UK Government press release.