Energy Bills Discount Scheme: details and eligibility

Up to 31 March 2024, the Energy Bills Discount Scheme (EBDS) will continue to help businesses with their energy bills, albeit at a reduced rate.

For all eligible non-domestic customers, the new Energy Bills Discount Scheme (EBDS), which will be in effect starting on 1 April 2023 and running until 31 March 2024, will automatically apply a unit discount of up to £6.97/MWh for gas and up to £19.61/MWh for electricity.

Who is eligible?

Eligibility for EBDS remains the same as for the previous scheme. It is available for anyone on a non-domestic contract, including:

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

Regarding the energy contract criteria, businesses and organisations must either be:

• on existing fixed price contracts that were agreed on or after 1 December 2021;
• signing new fixed price contracts;
• on deemed/out of contract or standard variable tariffs;
• on flexible purchase or similar contracts; or
• on variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only).

How does it compare with the previous scheme?

The unit discount of £6,97/MWh for gas and £19.61/MWh for electricity is subject to a wholesale price threshold of £107/MWh and £302/MWh for gas and electricity respectively. Businesses with energy costs below that level will receive no support.

This will take some businesses and organisations out of scope for support where they were previously receiving it. Under the Energy Bill Relief Scheme, the government supported price was set at £211/MWh for electricity and £75/MWh for gas.