The Government announced in January 2023 that the new scheme, Energy Bill Discount Scheme (EBDS) will replace the Energy Bill Relief Scheme (EBRS), from the 1st April 2023. The scheme is designed to support UK businesses and non-domestic energy users including charities and the public sector.
Included in this announcement was a higher level of support for those businesses requiring more substantial discounts, this is the Energy & Trade Intensive Industries (ETII),
What is EBDS?
The EBDS replaced the EBRS as of the 1st April 2023 with every non-domestic consumer in the UK being eligible for this support, providing the amount they are paying for their commodity is above the prices below.
Electricity – £302/MWh
Gas – £107/MWh (314p/th)
The support does have a maximum support limit of £19.61/MWh for electricity and £6.97/MWh (20 p/th) for gas.
The discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold.
EBDS will be automatically applied by the supplier, and there is nothing for end consumers to do.
What is ETII
ETII scheme is a scheme for additional support, primarily targeting non-domestic customer operating in energy intensive sectors.
Who qualifies for support
You must have a non-domestic contract with a licensed supplier and be:
Note that your organisation should be able to prove that at least 50% of its revenue is being generated from UK-based activity and is within one of the eligible sectors. Eligibility for local authorities will be determined at a premise level and where there are no relevant accounts, they will be required to declare that at least 50% of the space is taken up by operations within an eligible sector.
What discount do qualifying consumers get
If applicable customers will see discounts that reflects the difference between the price threshold (detailed below) and the wholesale price.
Electricity – £185/MWh
Gas – £99/MWh (290p/th)
The discount will only apply to 70% of energy volumes and will be subject to a maximum discount of £89/MWh for electricity £40/MWh (117p/th) for gas. The remaining 30% will be covered by the baseline of support (EBDS) if those thresholds are met, or charged at the existing commodity rate.
How to apply
Applications opened on the 26th April 2023 and are open for 90 days from then to apply. The link below will take you to the portal.
ETII Portal
In order to complete the application you will need the following information.
The evidence required for the application
Signed director’s declarations letter You will need to provide a letter signed by a named director or equivalent of your organisation or business. You should use the template provided, which sets out what must be included in your letter.
Additional financial evidence You may also need to provide further information if your business or organisation was not registered at Companies House with an eligible SIC code in December 2022.
This evidence is:
To help with the processing of your application, you could also upload a letter signed by an external auditor or chartered accountant. This should confirm that you are in an eligible sector, and that 50% or more of your revenue generated from Great Britain and Northern Ireland are in an eligible sector. A template for the accountant’s report is available.
Local Authorities (including libraries)
Local authority applicants who cannot provide the financial evidence should upload floor plans of the relevant property, with accompanying measurements in square meters. This should show that 50% or more of your activities are in an eligible sector.
The government has setup a customer support team that you can contact with any queries regarding ETII eligibility:
Email: support@ebds.beis.gov.uk
Telephone: 0300 400 5251
Monday to Friday, 9am to 5pm
The window is only open for 90 days, so please act quickly.
If you have any further questions please contact your MSA.
