Customers on a Fixed Rate Contract

Customers on a fixed rate contract

Am I eligible for EBRS?

• If you agreed your fixed price contract on or after 1^st December 2021 or are signing a new fixed price contract after 1^st October 2022 that is above the government supported price of the scheme (currently set at 7.5p/Kwh for gas and 21.1p/Kwh for electricity), you are eligible.
  
  There’s no need to do anything to opt into the scheme. We’ll be in touch to confirm your eligibility, your level of discount and how it will be applied.
  
  If you have any other contracts going live within this period, we will contact you separately to confirm their eligibility status.
• If you agreed your contract with us before 1^st December 2021, or your fixed tariff is based on wholesale prices below the government supported price, your contract is not eligible for the Energy Bill Relief Scheme.

How will the discount be calculated?

• Depending on the day that the contract was agreed, the government will provide a unit rate discount which we will apply to your usage over the period from 1^st October 2022 to 31^st March 2023.
• The government has now published the Energy Bill Relief Scheme discount rates for fixed and default/variable contracts, which you can find here.
• Once the discount is applied, the total price of gas or electricity cannot fall below the government supported price (currently set at 7.5p/Kwh for gas and 21.1p/Kwh for electricity), so the minimum amount that will be paid is the government support price.

What is the Energy Bill Relief Scheme (EBRS)?

• The EBRS has been designed to provide non-domestic energy users worst affected by the high energy prices with much-needed help with their energy bills over winter 2022/2023.
• The scheme will run from 1^st October 2022 – 31^st March 2023 across Great Britain, and the government will provide a discount on energy bills over this period.
• More information on the scheme can be found in the government’s press release (https://www.gov.uk/government/news/government-outlines-plans-to-help-cut-energy-bills-for-businesses) and explainer document (Energy Bill Relief Scheme: help for businesses and other non-domestic customers - GOV.UK (www.gov.uk))
• Customers do not need to take any action and the discount will be automatically applied for eligible customers.

How much will the discount be?

• The level of price reduction for each business will vary depending on your contract type and circumstances and is determined by the government. See below for more details.
• We’re letting eligible customers know that they are eligible and the level of discount they can expect.

Who is eligible for the EBRS?

• The EBRS will be available to non-domestic customers including businesses, voluntary sector (e.g. charities), public sector organisations (e.g. hospitals and schools) who:
• Agreed a fixed price contract on or after 1^st December 2021 that is above the government supported price. Fixed contracts agreed before this date will not be eligible.
• Are on tariff/deemed/out of contract rates
• Are on flexible purchase (or similar) contracts - eligibility and the level of discount will be calculated according to the specifics of each contract

Exclusions: There may be very limited exclusions to eligibility, for example businesses that use gas or electricity for the purpose of generating power they are selling back into the grid, such as power stations, pumped hydro or grid-level battery storage.

Do I need to change my product or buying behaviour?

• We will be encouraging those customers on a variable or deemed contract to fix their price with us.
• We will not be offering a 6-month fixed price contract to those customers on a flexible contract (excluding microbusiness customers on deemed rates).
• Normal buying behaviour must continue. As stated in government guidance, ‘non-domestic suppliers and consumers must not profit from the scheme other than for its intended purpose of providing relief on necessary energy bills. Any such activity will result in support being refundable to government and may be liable to further penalties’.

Are green levies included in the discount?

• Non-domestic customers bills will still show green levies being charged, but in all cases those who get this charge will be covered by the EBRS discount for eligible energy use.

Why have I received no discount even though my business contract is eligible?

• As the rates on the day you agreed your contract are below the supported price for the scheme, the government will not be able to provide a discount for your business energy.