Recently the government has announced an update on the Energy Bill Relief Scheme (EBRS). This update will give your business some clarity on what to expect in terms of government support when it comes to energy bills next year.
The EBRS began in October this year and has offered protection for businesses against high energy prices. This has provided companies with a bit more stability over the winter when the price of energy is particularly high anyway. The support is only going to be available over six months and will come to an end on 31st March 2023.
The government has said that support for all businesses beyond the price cap is unsustainable and will cost the country far too much. Therefore, they have announced that further support will be given but to businesses that need it most.
Therefore, they are currently conducting a review of energy support for non-domestic customers.
What businesses will receive support after the price cap ends
In this review of the EBRS, the government have said that they recognise that there are some businesses that cannot pass costs through when it comes to energy prices or absorb costs efficiently. These businesses will be supported.
Businesses that are energy intensive and exposed to higher energy prices will also receive further support with their business energy bills.
During this time before the energy review government are going to be assessing which groups of non-domestic customers remain particularly vulnerable to energy prices. This will take into account the latest price position and market movements, as well as the cost pressures each different industry has to deal with.
What support will be available
The overall level of support from the government is going to be significantly reduced and targeted towards those who are most affected by energy prices. The support will also be consistent with businesses being incentivised to increase the efficiency of their energy consumption.
The government have said that there will be a considerably high bar business have to pass to continue receiving government support beyond March next year.
Before the review, the government will be assessing whether it would be best to extend the existing scheme to businesses that need help after the initial support ends or replace it with a new scheme.
When will the support be announced?
The review of support is currently being carried out by the HM treasury and in close engagement with BEIS. Any decisions on support will be announced by 31st December 2022.
How can businesses reduce costs for next year?
The government have made it clear that support for businesses is going to be based on sustainability measures. They have urged that all businesses should be using the current support to shield themselves from the impact of high energy prices.
Whilst your business is supported by price volatility you should take this opportunity to improve your energy efficiency and adapt your business operations to fit in line with this.
Reducing your energy consumption whilst you still have support will also reduce your overall energy prices. This means that even of your business is not eligible for government support after March 2023, you could still be paying less for your energy bills.
How can your business increase energy efficiency?
There are many ways that your business can start to manage your energy consumption over the next few months in order to reduce energy bills. We have a range of services aimed at helping your business reduce the amount you pay for your energy bills.
If you would like to speak to one of our energy experts today to see what we could do for you, then please get in touch here.
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