Energy Spotlight: The End of the Energy Bill Relief Scheme

In this monthly edition of Energy Spotlight, we thought it necessary to focus on the Energy Bill Relief Scheme. A critical lifeline offering support to businesses with rising energy costs. There is so much more that is going on in the energy industry which we could report on however, as this support is so important to many businesses, we will focus on how the end of EBRS will impact your business and what you can do to prepare with our 10 point checklist.

The Energy Bills Relief Scheme (EBRS), a government-launched initiative aimed at helping businesses manage rising energy costs, is coming to an end today, March 31st, 2023. The scheme will be replaced by the less generous Energy Bills Discount Scheme (EBDS), which runs until March 31st, 2024. Businesses need to be prepared for the potential increase in energy bills as a result of the transition from EBRS to EBDS. Here's a summary of what you need to know:

1. Reduced financial support with EBDS

The government has allocated £5 billion for 12 months under the EBDS, compared to the £18.5 billion allocated for six months under the EBRS. This means businesses may still face higher energy bills even with the discount applied. More details about the EBDS and its impact on businesses can be found below:

2. Be proactive with energy contracts

Businesses need to be aware of when their current fixed-rate deals end and take steps to be as energy-efficient as possible. For those on variable, out-of-contract, or deemed rates, it's worth comparing fixed deals to lock in lower rates. For businesses on fixed-rate contracts ending soon, it's advisable to secure a new contract now to mitigate market risk and exposure.

3. Ensure accurate billing

Regular meter readings should be taken and sent to suppliers to ensure accurate billing. Businesses can also ask suppliers to install smart meters to keep their bills precise. More information on smart meters can be found below:

4. EBRS vs. EBDS

The EBRS has provided generous support to customers, while the EBDS offers less support. No new business energy contracts have or will receive support since wholesale rates are now below EBRS and EBDS eligibility since December 25th, 2022.

5. Additional support for small businesses

Businesses can explore other financial support options such as government grants, subsidies, and local council funding opportunities. These can include funding for energy efficiency measures and installation of renewable energy technologies. More information on available grants and subsidies can be found on the below link:

6.Energy Efficiency Measures

Improving energy efficiency through simple changes like switching to energy-efficient lighting, improving insulation, and using smart technology can help businesses reduce energy consumption and lower their energy bills. More significant changes include upgrading equipment, implementing demand-response programs, and investing in renewable energy solutions.

7.Energy Procurement Strategy

Developing a comprehensive energy procurement plan helps businesses navigate complex energy markets and identify opportunities for savings. By working with our team, we can evaluate the market, select favourable suppliers and pricing structures, and consider long-term fixed-price contracts for price stability and budget certainty. Learn more about our Utility Health Check:

8.Deploying Low Carbon Technology

Investing in low carbon technology, such as solar panels, allows businesses to generate their own clean energy, reducing reliance on the grid and exposure to rising energy prices. More information on our low carbon technology solutions and Solar PV can be found below:

9.Added Value Solutions

Businesses can use added value solutions like kVA Capacity Analysis and Bureau Services to mitigate the risk of energy price increases. kVA Capacity Analysis lowers energy bills without reducing consumption by ensuring the correct kVA Capacity allowance is set. Bureau Services automate billing validation services, providing accurate billing and freeing up operational resources within your business.

10.Employee Education

Educating employees about energy efficiency and conservation can create a culture of energy efficiency in the workplace. Training on energy-efficient practices, encouraging equipment shut-off when not in use, and incentivising employees to reduce energy consumption helps businesses significantly reduce their energy usage and costs.

By implementing these strategies, businesses can better navigate the challenges of energy price increases and maintain financial stability in a constantly changing energy landscape.

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