The government has recently announced its Energy Bill Relief Scheme for businesses. This scheme will give businesses a discount on their bills based upon a government-supported baseline price.
The government has said that small businesses will receive the same level of support as domestic customers. This news will come as a huge relief for many small business owners. Research conducted by Simply Business found that 54% of small businesses believe that increasing energy and fuel costs is their biggest challenge. This is something the Energy Bill Relief Scheme is helping to alleviate.
When does the scheme start?
The scheme begins on 1st October 2022 and ends on 31 March 2023.
The scheme will be available to everyone on a non-domestic contract including:
- Voluntary sector organisations
- Public sector organisations such as schools, hospitals and care homes
- On existing fixed price contacts that were agreed on or after 1 April 2022
- Signing new fixed-price contracts
- On deemed/out-of-contract or variable tariffs
- On flexible purchase or similar contracts.
What discount is available under the scheme?
The discounted price under this scheme is:
- £211 per megawatt-hour (MWh) for electricity
- £75 per MWh for gas
How do I get the energy discount?
Small businesses will not need to do anything. The discount will be automatically applied to your bill. Businesses should start seeing the discount from November 2022 for the energy they have used in October.
How does the scheme work?
The government has said that they expect energy costs this winter to be £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 businesses that are most vulnerable by investigating 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
How can we help?
Hawsons has a dedicated team of small business accountants in Sheffield, Doncaster, and Northampton. Our Small Business Services Department is dedicated to helping smaller businesses, providing a range of tax and accountancy services to small and growing businesses. We generally help sole traders, partnerships, and limited companies.
Starting up a new business is a challenging process and there are many aspects a small business owner must consider. We have a proven track record in helping new and small businesses get off the ground and continue to grow. Our small business accountants can help in all aspects of setting up and running your business.
Autumn Statement 2023 On 22 November 2023, Jeremy Hunt delivered the ‘Autumn Statement for Growth’. Against an improving economic backdrop, the Chancellor is keen to stimulate economic growth and highlighted 110 measures for businesses. In addition, there were...
On 16th May, the IASB published guidance regarding the effects of climate related matters on financial statements prepared in accordance with the IFRS for SMEs financial statements. Full guidance can be found here. The guidance contains examples of areas where...
The government is currently consulting on various options to simplify non-financial reporting rules indicating consideration of the appropriateness of the current company thresholds. The Department for Business and Trade (DBT) and Financial Reporting Council (FRC) are...