The Energy Bill Discount Scheme (EBDS), which provides a discount on energy bills for businesses and other non-domestic customers, is due to end in March 2024. This means that businesses will need to start planning for how they will manage their energy costs without this support.
The impact of the end of the EBDS will vary depending on a number of factors, including the size and type of business, the industry sector in which it operates, and its energy consumption patterns. However, it is likely that many businesses will see their energy bills increase significantly when the scheme ends.
This could have a number of negative consequences for businesses, including:
- Reduced profitability: Increased energy costs could reduce businesses' profit margins, making it more difficult to operate sustainably.
- Job losses: Some businesses may be forced to lay off staff in order to offset the cost of higher energy bills.
- Increased prices for consumers: Businesses may pass on the cost of higher energy bills to their customers, leading to higher prices for goods and services.
There are a number of things that businesses can do to prepare for the end of the EBDS, including:
- Reviewing their energy consumption: Businesses should carefully review their energy consumption patterns to identify areas where they can save energy. This could involve implementing energy efficiency measures, such as switching to more efficient lighting or insulation.
- Shopping around for energy suppliers: Businesses should compare energy prices from different suppliers and switch to the best deal. There are a number of energy price comparison websites available to help businesses do this.
- Considering fixing their energy prices: Businesses may want to consider fixing their energy prices for a period of time to protect themselves from future price rises. However, it is important to weigh up the pros and cons of fixing prices before making a decision.
The government has said that it will continue to monitor the energy market and provide support to businesses if necessary, but it is clear that businesses need to start planning for the end of the EBDS now.
Additional tips for businesses
- Invest in renewable energy: Businesses can invest in renewable energy sources, such as solar panels or wind turbines, to reduce their reliance on grid electricity. This can help businesses to save money on their energy bills in the long term.
- Develop an energy management plan: Businesses should develop an energy management plan to identify and implement ways to reduce their energy consumption and costs. This plan should be regularly reviewed and updated to ensure that it is effective.
- Educate employees about energy efficiency: Businesses should educate their employees about energy efficiency and how they can help to reduce the company's energy consumption. This could involve providing training on things like switching off lights and appliances when they are not in use.
By taking these steps, businesses can prepare for the end of the EBDS and minimise the impact of higher energy cost.
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