The government has published further details about its energy bill relief scheme to reduce energy costs for charities, businesses and public sector organisations.
The details state that a discount will be automatically applied to charities’ energy bills from 1 October to 31 March. This means that voluntary organisations will not need to apply for the support, it will automatically be provided to bills.
What is the support?
The government has announced that the supported wholesale price for electricity is expected to be £211 per MWh and £75 for gas. This is less than half the wholesale prices previously expected this winter.
How does the scheme work?
The government has said that they expect energy costs this winter to be up to £600 per MWh for electricity and £180 per MWh for gas. Therefore, when based on those costs the government-supported discount will be worth £389 per MWh for electricity and £105 per MWh for gas.
What happens when the scheme ends in April 2023?
The government is expected to review the scheme in three months’ time. This review is going to be focussed on whether the scheme is supporting the most vulnerable by considering if the support should be more targeted.
If you would like to find out more detailed information about the Energy Bill Relief Scheme, including examples of how the scheme works or reductions please visit: https://www.gov.uk/guidance/energy-bill-relief-scheme-help-for-businesses-and-other-non-domestic-customers
What does the charity sector think about the discount?
Leaders in the charity sector have said that the discount implemented by the government will be an important relief to thousands of charities across the UK. However, they have advised the government to consider further long-term support.
How can we help?
At Hawsons we have dedicated team of charity and not-for-profit accountants at our offices in Sheffield, Doncaster and Northampton. At Hawsons we recognise that not-for-profit organisations have very different requirements from other businesses and are currently exposed to a challenging economic climate.
Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.
Charities & not-for-profit organisations are currently facing extensive changes in their regulatory and legal framework. Given the additional pressures on fundraising, complex tax regimes, internal risk exposure, and stakeholder demands, it has never been more important to obtain specialist professional advice.
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