Government Reveals Plans to Help Cut Energy Bills For Businesses | QCS

Government Reveals Plans to Help Cut Energy Bills For Businesses

Dementia Care
September 28, 2022

New support for businesses – including care providers – and public sector organisations facing rising energy bills in Great Britain and Northern Ireland has been unveiled by the Government.

The Energy Bill Relief Scheme will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals). This support will be equivalent to the Energy Price Guarantee put in place for households.

Discounts applied automatically to bills

It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial 6 month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

You do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.

To help, the government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which it says is a discounted price per unit of gas and electricity.

The level of price reduction for each business will vary depending on their contract type and circumstances.

Not using gas or electricity?

If you are not connected to either the gas or electricity grid, equivalent support will also be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Further detail on this will be announced shortly.

Government will publish a review into the operation of the scheme in three months to decide future support after March 2023.

The review will focus in on identifying the most vulnerable non-domestic customers and how the government will continue assisting them with energy costs.

Are you eligible?

The scheme will be available to everyone on a non-domestic contract including:


Voluntary sector organisations, such as charities

Public sector organisations such as schools, hospitals and care homes

who are:

  • On existing fixed price contracts 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

The amount your bills will be reduced

The government will provide a discount on your gas and electricity unit prices. To calculate your discount, the estimated wholesale portion of the unit price you would be paying this winter will be compared to a baseline ‘government supported price’ which is lower than currently expected wholesale prices this winter.

For all non-domestic energy users in Great Britain this government supported price has been set at:

  • £211 per megawatt hour (MWh) for electricity
  • £75 per MWh for gas

A comparable rate will be set shortly for Northern Ireland.

For comparison, wholesale costs in England, Scotland and Wales for this winter are currently expected to be around:

  • £600 per MWh for electricity
  • £180 per MWh for gas

Further support for business/non-domestic customers

There is a range of ongoing schemes in place to support businesses with their energy costs. These include:



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