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Energy Bills Discount Scheme (EBDS): a continuation of government energy bill support for non-domestic users

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By SSE Energy Solutions
11 January 2023

Business Energy

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For more information and frequently asked questions about the Energy Bill Discount Scheme (EBDS). Visit our webpage here.

The Department of Business, Energy and Industrial Strategy (BEIS) has published details of the next phase of energy bill support for non-domestic customers once the current Energy Bills Relief Scheme (EBRS) ends on 31 March 2023.

The Energy Bills Discount Scheme (EBDS) and Energy and Trade Intensive Industries (ETII) scheme will run from 1 April 2023 to 31 March 2024.

They will be open to the same sectors covered by the EBRS, which means customers with a non-domestic contract such as a business, public sector organisation or charity will be eligible.

The overall level of government support will be reduced from this winter’s levels, with discounts available to non-domestic customers from one of two schemes.

Energy Bills Discount Scheme (EBDS)

Customers that agree a contract when the wholesale electricity price is above £302/MWh or the wholesale gas price is above £107/MWh (also known as ‘threshold prices’), will be eligible for a discount above those levels up to a maximum of £19.61/MWh for electricity and £6.97/MWh for gas.

Suppliers will automatically apply the discount (up to the maximum level) for customers who:

  • agreed a fixed contract on or after 1 December 2021
  • are on a deemed, out-of-contract or standard variable tariff
  • are in a flexi supply contract

Energy and Trade Intensive Industries (ETII) scheme

Organisations who are particularly vulnerable to high energy prices due to their energy intensive and trade exposure, (referred to as Energy and Trade Intensive Industries or ETIIs), will receive a higher level of support, subject to a maximum discount.

BEIS has published a full list of eligible sectors that will receive a larger discount to their energy bills if the wholesale prices for their contracts are above the EBDS ‘threshold prices’.

BEIS has set those wholesale threshold prices at £185/MWh for electricity and £99/MWh for gas, meaning a discount will be applied above those levels to the bills of eligible ETIIs.

The maximum discount of £89.1/MWh can be applied for electricity customers and £40/MWh for gas customers. However, those discounts can only apply to 70% of an ETII’s energy volumes.

BEIS has said it will publish further information in due course about how companies with the relevant SIC code can apply for ETII eligibility. Suppliers will not be responsible for determining ETII status.

We’ll be engaging with BEIS over the coming weeks to finalise the details of both schemes and will be posting information across our website and social channels with relevant updates.

You can find more information on the schemes on the government website.