What can businesses do about energy bills?

Under the terms of this latest energy discount scheme, eligible organisations – including charities, care homes, and schools – should automatically receive a discount of £6.97 a megawatt hour (MWh) for gas and £19.61 a MWh for electricity, payable between April 2023 and March 2024.

According to the government, this equates to a saving of £2,300 for an average pub, or £400 for a typical small retail store.

“This country has a proud industrial history and one that we must protect from the volatile energy market, following Putin’s illegal war in Ukraine.

“That’s why we’re going above and beyond to make sure all businesses can access our support, even if they get their energy via non-standard routes – and I urge these customers to check their eligibility today.”

Amanda Solloway, Minister for Energy Consumers and Affordability

The EBDS replaces an earlier scheme, the Energy Bill Relief Scheme, which was launched in October 2022 and covered the difference between wholesale prices and a “government-supported price” of £211 a MWh for electricity and £75 a MWh for gas – at a reported cost of more than £35 million a day.

However, while it enables certain large companies, such as steelmakers, to claim government support in a way not previously possible, it has been criticised for reducing support for smaller businesses.

The Federation of Small Businesses (FSB) claims a business paying £24,528 per year for energy under the old government support scheme could now face a bill £82,539 under the EBDS.

Yes. If your business fails to qualify for support under the EBDS, or your energy bills remain out of reach once the discounts are applied, there are some other ways to manage your energy costs.

These include:

1. Set up a business energy payment plan

It’s sensible to contact your supplier as soon as you know you are likely to struggle to pay your energy bills; companies are always easier to negotiate with before their bills start to go unpaid.

You can then request access to a more affordable payment plan, which could include:

• a review of your payments and debt repayments
• payment breaks or reductions
• more time to pay
• access to hardship funds

If your supplier is unwilling to help, it may also be worth taking advice from an organisation such as Citizens Advice (0808 223 1133).

2. Look into business finance schemes and grants 

Other grants and schemes may be available from:

• Suppliers – many companies offer both hardship funds and energy efficiency grants such as subsidies on the cost of buying more energy-efficient equipment.
• The government – there are various local business support schemes that you can use to help minimise your energy costs. Check what’s available in your area by checking the government finance and support finder or asking your local council.
• Charities – depending on your sector and what you’re trying to do, you may be able to benefit from charitable funding. To find out more, try Grants Online.