An Introduction To The Energy Bill Discount Scheme (EBDS)
Posted on Jan 31, 2023
Introduced at the beginning of January by the UK government, the Energy Bill Discount Scheme or the EBDS, for short, will spring into action from 1 April 2023. This will not only see the beginning of a new support scheme for businesses but will see the end of the temporary Energy Bill Relief Scheme (EBRS).
What is happening to the EBRS?
The EBRS, which we have touched on in a number of previous blogs, will be coming to an end on the 31st March 2023.
The government was clear from the beginning that this scheme would only be a temporary solution for businesses and all non-domestic energy customers to deal with the effects of rising wholesale gas and electricity prices. As wholesale gas prices have now fallen back down to levels seen before the invasion of Ukraine, the government will be ending the EBRS and instead introducing a new scheme, the EBDS.
Key facts about The Energy Bill Discount Scheme
Below are the simple key facts about the Energy Bill Discount Scheme, that all business energy customers should be aware of:
- This new scheme will come into effect from April 1st 2023
- It has been designed to support businesses over the following 12 months.
- The new scheme will limit the taxpayer’s exposure to volatile energy markets, with a cap that will be set at £5.5 billion.
- The EBDS will then come to an end on 31st March 2024.
What does this mean for business energy customers?
This new scheme will provide an energy bill discount to all eligible businesses. This will be a per-unit discount, subject to a maximum discount. These maximum discounts have been set at:
- Electricity – £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
- Gas – £6.97 per MWh with a price threshold of £107 per MWh
However the government has recognised that there are particular sectors where the higher energy prices leaves them more vulnerable than others. The list of Energy and Trade Intensive Industries (ETII) details which businesses are included in this. Those within these sectors will receive a higher level of support from the government. The maximum discounts for these will be:
- Electricity – £89 per MWh with a price threshold of £185 per MWh
- Gas – £40 per MWh with a price threshold of £99 per MWh
Just like previous schemes, customers do not have to actively apply reductions to bills. Instead, suppliers will do this on your behalf. However, if you are a company working within an industry listed on the ETII list, you will have to apply for the higher support available. The discount you are eligible for will be deducted in pence per kilowatt hour.
It is important to note that depending on the tariff and contract you are on and your individual organisation, the level of support will vary.
Are you eligible for the Energy Bill Discount Scheme?
On the official government website, the eligibility criteria has been outlined as anyone who is on a non-domestic energy contract including the following:
- voluntary sector organisations, such as charities
- public sector organisations such as schools, hospitals, and care homes
- on existing fixed price contracts that were agreed on or after 1 December 2021
- signing new fixed price contracts
- on deemed / out of contract or standard variable tariffs
- on flexible purchase or similar contracts
- on variable ‘Day Ahead Index’ (DAI) tariffs (Northern Ireland scheme only)
For More information about the EBDS Scheme or to confirm that you are eligible, please do not hesitate to contact the D-ENERGi customer support team. We will be happy to help explain the scheme in more detail and explain how this will benefit your organisation from April onwards.
What is P272? P27what? You aren’t alone in the dark about P272. P272 is regarded as one of the biggest shakeups to the business electricity market since deregulation. Sounds more like a character out of star wars, but here are some facts on P272, which we have put together hopefully jargon free. If you unsure on how P272 affects your business please do not hesitate to contact us for free on 0800 781 7626, we will be delighted to help you further. You may also like to view our infographic and visit our support page dedicated to the P272 OFGEM legislation.
The Facts – What Is P272
P272 is a new regulation which has been implemented by OFGEM. It affects the way suppliers settle electricity consumption for businesses with a specified energy use. Resulting in sites being changed to half hourly.
Remember, remember the 5th November… “Guy Fawkes?”. No, no… this is when the P272 migration began! The deadline for all sites to be settled to Half-Hourly is 1st April 2017. Don’t be fooled by the date, it really is 1st April! Also, don’t be put off by the 2017 threat – it’ll be here before you know it!
The settlement is being put in place in order for suppliers to balance the amount of energy being purchased from the Generators. The aim for P272 is to make the readings more accurate via the half hourly consumption. This will provide distributors with more understanding on electricity use. This results in networks ensuring they are sufficiently developed and maintained.
Ultimately, P272 helps you and your business manage and also use the energy smartly. It gives you the opportunity to see where and when you are consuming energy. Also, a more accurate settlement which could lead to better tariff rates… something nobody would say no to, agreed?
Now you (hopefully) have a little more understanding of P272 here is how to prepare:
Learn if your portfolio is affected.
Speak to your supplier, they will be more than happy to explore your options with you.
Select your Half-Hourly Meter and Data Collector.
If your business has a maximum demand electricity supply categorised by profile classes:
05 06 07 08
And you have an Automated Meter Reading meter of which is capable of HH data collection and remote programming. Just to let you know… 160,000 sites are affected so it is definitely worth double, maybe even triple checking!
“How do I check?!” I hear you say? Simple… you just check the S number at the top of your electricity bill to find out your sites profile class.
Believe it or not, P272 can be very beneficial for you and here’s why:
You receive accurate billing
It offers you the ability to avoid peak times of electricity use
It gives you an insight on your energy usage
It allows you to make room for an opportunity of improvement and efficiency
This is an OFGEM regulation affecting ALL maximum demand meters and ALL electricity suppliers equally. If you’re being advised P272 does not affect your business, please let us double check this for you.
A Russian rocket blasted into space this month to investigate whether any methane gas is present on Mars, as part of the joint ExoMars project created by the European and Russian space agencies.
Methane is a gas created by living microbes, and if it were to be detected it would be a revelation in the space industry as it could prove that life exists or existed on the red planet, some 225 million kilometres away from the Earth (which is itself something of a shock, given that in 2003 Mars was a mere 56 million kms away).
We already know there is life-giving water on Mars. Just like the Earth it has ice caps, although the water they contain is more elusive. The American space agency NASA made a huge discovery in 2006 when it found there was water flowing through the planet in even the hottest months of the year, and that the ‘lines’ that appear on our satellite images of Mars are streaks of flowing salt water.
That’s when the questions ‘did life exist on Mars, and can we find out?’ really started to arise.
The ExoMars project involves sending up a Trace Gas Orbiter to sniff the Martian atmosphere for methane, and if the results are positive then this would establish that methane has been generated via geology or a biological process.
As part of the same mission, a stationary lander called Schiaparelli will test the technology for a subsequent mission – ExoMars 2018 – which will see a UK-built rover collect soil samples filled with water particles and drill below the planet’s surface to look for other signs of life. That’s when the search for Martian life will start in earnest.
These two projects combined will cost an eye-watering £900 million but isn’t it worth it for the chance to make one of the biggest discoveries of all time? What a time to be alive!
Planetary scientist Dr Peter Grindrod, from Birkbeck, University of London, who is funded by the UK Space Agency, certainly thinks so. “It’s incredibly exciting,” he enthused. “This is a series of missions that’s trying to address one of the fundamental questions in science: is there life anywhere else besides the Earth? Finding that life exists elsewhere in the solar system would be a huge discovery, so the evidence has to be strong. As they say, extraordinary claims require extraordinary evidence.”
Wouldn’t it be amazing to find out if there really is Life On Mars, or if there has been in the past. It’s astonishing to think there could be more than just us Earthlings in our solar system!