EBDS Baseline Support

As with EBRS, EBDS will continue to offer support on the wholesale portion of a non-domestic customers’ unit rates, if they are higher than a minimum threshold.

• Most non-domestic customers will not see additional support on their energy bills from April given that the current wholesale price is below minimum thresholds.

How is the discount applied?

The baseline discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold. The discount is phased in when the contract's wholesale price exceeds the floor price, until the total discount per MWh reaches the maximum discount for that fuel.

Eligible customers will receive a per-unit discount on their energy bills during the 12 months from April 2023 to March 2024, subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users in Great Britain, these maximum discounts have been set at:

• Electricity: £19.61 per MWh (1.961p/KWh) with a price threshold of £302 per MWh (30.2p/KWh)
• Gas: £6.97 per MWh (0.697p/KWh) with a price threshold of £107 per MWh (10.7p/KWh)

The discount is only applied to the wholesale element of the bill and therefore the final per unit price paid by non-domestic customers will differ as it includes other costs such as network charges and operating costs.

Please refer to the Government's website here for more detailed information.