Published by 001 Limited – Business Energy Specialists
With the government’s announcement of the new Energy Bills Discount Scheme, 001 Limited would like to provide an explanation of what this means for you and your business.
The new scheme comes into place on the 1st of April 2023 and will run until the 31st of March 2024. All businesses, voluntary sector organisations and public sector organisations on terms that were agreed on or after the 1st of December 2021 will be eligible.
The scheme will only provide discounts on rates above:
- 10.7 p/kWh threshold for gas, with a maximum discount of 0.697 p/kWh
- 30.2 p/kWh threshold for electricity, with a maximum discount of 1.961 p/kWh
For example, a gas contract on rates of 12 p/kWh will pay 11.303 p/kWh from the 1st of April. Similarly, an electricity contract on rates of 40 p/kWh will pay 38.039 p/kWh from the 1st of April.
The reductions will be automatically applied by the supplier, so you don’t have to worry about applying for the scheme. Certain business that are deemed to be Energy and Trade Intensive Industries will receive a greater discount.
For these companies, the government has provided:
- 9.9 p/kWh threshold for gas, with a maximum discount of 4 p/kWh
- 18.5 p/kWh threshold for electricity, with a maximum discount of 8.9 p/kWh
The government have provided a list of qualifying Energy and Trade Intensive Industries on the link below.
If you are unsure whether your business qualifies, you can view your company on Companies House to see your SIC code.
We have also provided a link to the Office of National Statistics, which provides explanations for the differentiation between SIC codes.
Please do not hesitate to contact us if you have any questions.
Sectors eligible for the Energy and Trade Intensive Industries scheme:
The Office for National Statistics’ Standard Industrial Classification (SIC) Hierarchy: