As further information and updates regarding the government’s Energy Bill Relief Scheme becomes available TEC will continue to keep the membership informed of the latest information, providing additional clarity.
All TEC members are on a flexible purchasing contract and, extremely well hedged. What the relief scheme is saying for these types of contract is that any price reduction will depend on the difference between our monthly weighted average baseload price (determined by our individual hedging approach) and the government supported price. In this case the maximum support available per unit of energy will also be limited by the maximum discount.
This is only capping the price of the wholesale amount and no other elements of your bill such as non-commodity.
Support runs from 1st October 2022 to the 31st March 2023.
For the vast majority of TEC Members, the cap has no impact. Our hedging strategy has delivered a wholesale price under the capped levels for this winter. A handful of TEC Members who recently joined TEC are likely to be covered by this scheme.
The Government will publish a review into the operation of the scheme in 3 months’ time, to inform decisions on future support after March 2023. The review will focus in particular on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs. These are likely to be those who are least able to
adjust, for example by reducing energy usage or increasing energy efficiency.
Continuing support to those deemed eligible would begin at the end of the initial 6-month support scheme, without a gap.
TEC will continue to monitor developments and communicate with our members as we learn more.