Early Years – DFE An update on the new Energy Bill Relief Scheme

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Sep 26 2022

DfE announced all early years settings, schools and colleges will benefit from a new government Energy Bill Relief Scheme, providing a discount on wholesale gas and electricity prices for all non-domestic customers. This support will be equivalent to the Energy Price Guarantee put in place for households. Equivalent support will also be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.

The scheme will run for all businesses and non-domestic customers, including public sector organisations, and apply to energy usage from Saturday 1 October 2022 to Friday 31 March 2023.

The Energy Bill Relief Scheme will set a Support Wholesale Price for the wholesale cost of energy, limiting the amount customers can be charged for gas and electricity. This is expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter. The level of price reduction for each customer will vary depending on their contract type and circumstances.

As with the Energy Price Guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills. The savings will be first seen in October bills, which are typically received in November.

After three months, there will be a review into the operation of the scheme, to inform decisions on further support after March 2023. This will focus on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs.

Further details of the support and how it will benefit customers can be found in the press notice and GOV.UK explainer.

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