As of March 31st, 2024, the UK government's Energy Bills Discount Scheme (EBDS) will no longer be in effect. This scheme, launched in April 2023, provided a much-needed buffer for businesses facing unprecedented energy price hikes. But with its conclusion, many companies are left wondering what is next for their energy bills.
How the EBDS Helped Businesses
The EBDS functioned by offering a per-unit discount on electricity and gas bills for non-domestic customers. This helped to offset some of the sharp rise in wholesale energy prices, offering a crucial lifeline to businesses struggling to keep costs under control. The scheme was not a complete fix, but it undeniably eased the burden for many companies during a challenging economic period.
Why was the EBDS introduced?
The EBDS was introduced to replace the Energy Bill Relief Scheme (EBRS). The EBRS was introduced in 2022 and placed a cap against the wholesale price of the unit rate for business customers.
After running the EBRS from October 2022 till April 2023 the government decided to introduce the EBDS which was a lower level of support for businesses. The level of support the EBRS offered was too expensive for the government to sustain over a long period of time. This is why the EBDS was introduced.
This scheme still offered support for businesses but at a much lower level and ran longer than the original support scheme.
Why has there been no replacement for the EBDS?
There has been no replacement for the EBDS due to wholesale energy prices settling since last year. However, energy prices could rise again as the market is still susceptible to fluctuations.
This means that your company needs to be aware of market fluctuations before signing your next energy bill to avoid being stuck in a high price contract with no support.
Preparing for a New Energy Landscape
With the EBDS ending, businesses need to be proactive in managing their energy expenditure. Here are some key steps to consider:
- Shop Around for New Deals: Analyse your current energy contract and explore the market for potentially better deals. Fixed-term contracts may offer some stability in these uncertain times.
- Focus on Efficiency: Identify areas where your business can reduce energy consumption. Implement energy-saving measures like switching off lights and electronics during non-use hours, investing in energy-efficient appliances, and improving building insulation.
- Budget for Higher Costs: Be prepared for potentially higher energy bills in the coming months. Revisit your budget and adjust account for increased energy expenditure.
Looking Beyond
The government has not announced any direct replacements for the EBDS, leaving many businesses to navigate the changing energy landscape on their own. While this presents challenges, it is also an opportunity to re-evaluate energy consumption habits and implement long-term cost-saving practices. By being proactive and strategic, businesses can adapt to the new normal and ensure their energy costs remain manageable.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
