Next steps for the Energy Bill Relief Scheme

09 January 2023

A new energy scheme for businesses, charities, and the public sector has been confirmed, ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.

Topics

  • Inflation
  • Environmental sustainability

A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive, with food and drink manufacturuers included. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity. The list of eligible sectors can be found here.

Full information on the scheme can be found on HM Treasury website. 

Responding to the announcement of the new scheme, the Food and Drink Federation Chief Executive Karen Betts said:

“The government’s announcement of continued support for food and drink businesses with their energy bills is welcome. Manufacturers are under a great deal of pressure as they try to keep their heads above water while absorbing very high and volatile energy costs in order to keep the cost of everyday food and drink as low as possible for shoppers.

“This support recognises the criticality of the food and drink supply chain and that our businesses use constant levels of energy year-round, and it should help slow record levels of food and drink inflation. What’s important is we remain in close dialogue with government as the situation continues to evolve throughout the year for which the support is being provided, given how fast-moving the energy situation has become.”