The Government has announced details of the scheme that will provide some relief to the rising energy bills for businesses and non-domestic customers, including voluntary sector organisations.
The new scheme starts on 1st October 2022 and ends on 31st March 2023.
It is available to organisations who are:
• on existing fixed price contracts that were agreed on or after 1st April 2022
• signing new fixed price contracts
• on variable contracts
• on flexible purchase or similar contracts
If you are still on a fixed price contract which started before April 2022 you may not be eligible for a discount.
Before the discount is applied the predicted price from 1st October was £600 per megawatt hour (MWh) for electricity and £180 per megawatt hour (MWh) for gas. The scheme will reduce the price to €211 per MWh for electricity and £75 per MWh for gas.
The way the discount works will vary, depending on if you have a fixed, variable or other type of contract.
Here's an example of how it will work for an organisation with a variable contract:
• A small shop uses approx. 1 MWh of electric and 2 MWh of gas per month. This would cost approx. £1400 per month from 1st October without the relief scheme. With the maximum discount applied through the scheme the monthly bill would be reduced to approx. £800; a reduction of 45%.
The discount is applied automatically by your energy supplier, so you do not need to do anything. You should start seeing the discount from November 2022.
At the end of the six month scheme, the Government plans to continue energy support to vulnerable industries. They will review the current scheme in three months and decide where this further support will be targeted.
Although the scheme will help over the next six months, it's useful to have a plan to help reduce costs over a longer perlod.
Many community buildings in County Durham are taking advantage of a free energy audit that is currently available, as it provides clear evidence of how your energy is used and where savings could be made.
If you would like to find out more, please don't hesitate to get in touch. If you have been working directly with one of our Community Support Team, you can contact them in the usual ways or email info@durhamcommunityaction.org.uk and your enquiry will be directed to a member of the team.
