Chancellor Reveals New Energy Discount For Businesses

The Government has announced a new energy bills discount scheme (EBDS) for UK businesses, set to replace the current energy bills relief scheme (EBRS) once it ends in March.

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The new support package will last from 1 April 2023 to 31 March 2024, giving organisations a discount on high wholesale prices instead of capping energy costs. This means that firms will benefit from support in proportion to their usage.

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As with the current scheme, eligible organisations do not need to apply for the discount and will automatically receive reductions to their bills.

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Businesses in industries with particularly high energy usage and trade intensity, such as manufacturing, will receive a substantially higher level of support.

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According to Chancellor Jeremy Hunt, this reduced level of aid will help bring down inflation while providing as much support to businesses struggling with soaring energy bills as possible.

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The Chancellor has also written to energy watchdog Ofgem to see if further action is needed to prevent energy companies from passing costs onto businesses.

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Commenting on the downgrade of energy support, the Treasury said: The Government has been clear that such levels of this support, unprecedented in its nature and huge scale, were time-limited and intended as a bridge to allow businesses to adapt.