Energy Bill Relief Scheme (EBRS)
On 21st September, the Government announced details of the EBRS for non-domestic customers in the UK. Discounts will be applied to energy usage initially between 1st October 2022 and 31st March 2023.
The discount will be applied automatically to your bill – you don’t need to take any action.
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
• On existing fixed price contracts that were agreed on or after 1st December 2021
• Signing new fixed price contracts
• On deemed/out of contract or variable tariffs
• On flexible purchase or similar contracts
The government have currently set the price at:
► £211 per megawatt hour (MWh) for electricity
► £75 per MWh for gas
Versus estimated wholesale costs in England, Scotland and Wales for this winter:
► £600 per MWh for electricity
► £180 per MWh for gas
This is a significant level of support for business, but what does this mean in terms of savings to your business?
1) A medium sized manufacturing business using 200MWh of electricity and 1,600MWh of gas each month will receive a discount of £215,000 per month, reducing their original bill by more than 34%
2) A small business using 4MWh or electricity and 16MWh of gas a month will see a government supported price worth £380/MWh for electricity and £100/MWH for gas, meaning they receive a discount of £3,100 per month and reducing their bill by over 40%.
Is it enough?
Support under the EBRS has only been confirmed 31st March, so there is still significant uncertainty about what help, if any, will be available to businesses into the 2nd quarter of 2023. What all businesses in Shropshire and across the UK need now is a clear view ahead and the ability to plan in response to government policy.
Lack of clarity is detrimental to confidence and to this end we continue to lobby on your behalf at the highest level in government for urgent action.
For more information about the government’s EBRS CLICK HERE
As a Shropshire Chamber member, did you know that you have access to our business utilities auditing service? For rates comparison and switching advice go to the Chamber Finance Finder website for more information.
Did you know? The better your credit score, the more likely you’ll get a good energy deal. Your credit score is a snapshot of how financial institutions (and that includes energy companies) see your business. If you don’t have a good score, you may find it harder to get onto a good tariff, or you may be required to pay for energy in advance.
Fixing a poor credit score could be the key to unlocking better deals – and will certainly make your business more appealing to lenders should you seek funding.
If you don’t know your credit score, or need tips on improving it, Swoop can help too.
Chamber Finance Finder
Looking for business funding? The Chamber Finance Finder facility simplifies and speeds up the funding process, matching member’s businesses with the right funding opportunities across loans, equity investment, grants and commercial mortgages. You also have access to a team of experts ready to support you through the process.
Energy Saving Advice from the Carbon Trust
The Carbon Trust offer some excellent guidance for business about reducing energy costs, for more information
Recovery Loan Scheme
The Recovery Loan Scheme is still in operation and supports access to finance for SME’s in the UK, so that they can grow and invest. Finance can be used for any legitimate business purpose, including working capital or investment. Recovery Loan Scheme - GOV.UK (www.gov.uk)
The government guarantees 70% of the finance to the lender. As the borrower, you or your business are always 100% liable for the debt.
You may be eligible for a loan through the Recover Loan Scheme if your business:
► Is trading in the UK
► Has a turnover of £45 million or less
You need to show that your business:
► Is viable
► Is not in difficulty
If your business was a recipient of support under the earlier COVID-19 loan guarantee schemes and earlier phases of the Recover Loan Scheme, you are still eligible to access finance under the scheme if you fit the criteria.
Term loans or overdrafts are available from £25,001 to £2 million per business group. *see website for full terms.
Loan terms are up to 6 years for loans and asset finance facilities and up to 3 years for overdrafts and invoice finance facilities.
How can we help?