New energy bills discount scheme for businesses

A new government energy bills discount scheme for UK businesses, charities and the public
sector will start in April.

The current scheme ends in March but the new scheme means that all eligible UK businesses
and other non-domestic energy users will receive a discount on high energy bills until 31 March

This will help businesses locked into contracts signed before recent falls in wholesale prices
manage costs and provide others with reassurance against the risk of prices rising again.

‘Long-term certainty’

The government provided an unprecedented package of support for non-domestic users
through this winter, worth £18bn. But such levels of support were time-limited and intended as a
bridge to allow businesses to adapt.

The latest data shows wholesale gas prices have almost halved since the current scheme was
announced. The new scheme strikes a balance between supporting businesses over the next
twelve months and limiting taxpayer’s exposure to volatile energy markets, with a cap set at

The aim of the scheme is to provide long-term certainty for businesses to allow them to plan

From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with
a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to
their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for
those benefiting from lower energy prices.

More support for energy- and trade-intensive businesses

A substantially higher level of support will be provided to businesses in sectors identified as
being the most energy and trade intensive – predominantly manufacturing industries.

Manufacturing firms are often less able to pass through cost to their customers due to
international competition and have long been associated with higher energy usage.

Businesses in the manufacturing industry will receive a gas and electricity bill discount based on
a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and
£89.1/MWh for electricity.

Automatic reductions

Customers do not need to apply for their discount. As with the current scheme, suppliers will
automatically apply reductions to the bills of all eligible non-domestic customers.

Businesses in England will also benefit from support with their business rates bills worth
£13.6bn over the next five years, a UK-wide £2.4bn fuel duty cut, a six-month extension to the
alcohol duty freeze and businesses with profits below £250,000 will be protected from the full
corporation rate rise, with those making less than £50,000 not facing any corporation tax
increase at all.

For further information about the energy bills discount scheme visit the government website.

Find out which sectors are eligible for the scheme here:

Free event: ‘Tackling the energy crisis’
For SMEs interested in learning about ways to help tackle the energy crisis affecting your
business, register your place at a free EnTRESS event ‘Tackling the energy crisis:
Implementing innovative low carbon technologies’ here:

It takes place on Thursday 2 February at Stafford Rugby Union Football Club in Stafford.

The event will cover renewable technologies and energy saving measures that could be
implemented by small and medium-sized businesses.

Learn some simple energy-saving tips and register for free with Sandwell Energy Switch here to
see whether you can further reduce your gas and electricity bills.