Several energy schemes are accessible to both businesses and domestic customers to alleviate the impact of increasing energy costs.
It’s essential to note that each scheme comes with its eligibility criteria, and certain opportunities may have limited availability before closure. For companies, the primary options include:
Power Bill Reduction Program
The government will provide a reduction on your gas and electricity bills if you qualify for the Power Bill Reduction Program. Eligible commercial users will get a per-unit reduction on their energy bills for the 12 months from April 2023 to March 2025, up to a certain discount limit. The relative discount will be implemented when wholesale prices exceed a specific threshold.
For the majority of non-domestic energy users in Great Britain and Northern Ireland, the maximum discounts are as follows:
- Electric Rates: Reductions up to £19.61 per megawatt-hour (MWh) when bulk prices exceed £302 per MWh.
- Gas Prices: Discounts of up to £6.97 per MWh when wholesale prices exceed £107 per MWh.
No discount is applied if wholesale prices remain below the specified threshold.
Government Grants for Energy Efficiency in Business
Numerous government-backed initiatives provide grants, loans, and subsidies to assist smaller businesses in enhancing their environmental impact. Additionally, certain local councils offer funding for energy efficiency measures or grants to support sustainable business growth.
Typically, the application process involves presenting a business case detailing the project or measure you intend to implement. A comprehensive list of currently available schemes can be found on the government’s Finance and Support for Your Business page.
Energy Supplier Energy Grants
Support for energy efficiency is not solely restricted to government programs. Your energy supplier might also provide grants specifically for businesses.
To ascertain whether your supplier has any ongoing schemes or offers support to both new and existing customers, the most effective approach is to reach out to them directly. And for domestic customers:
Energy Price Guarantee
The Energy Price Guarantee for residential customers mirrors the existing energy price cap, safeguarding customers by setting a cap on the per-unit charge for energy usage by suppliers.
Presently, it reduces the typical dual-fuel gas and electricity costs for a household in Great Britain to approximately £3,000 per year.