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Don't Miss Out: Deadline Nears for UK's ETII & Energy Bill Discount Scheme (EBDS)


How to Claim Energy Bill Discounts for UK Businesses under ETII & Energy Bill Discount Scheme


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As a UK-based business operating in energy-intensive sectors such as manufacturing, processing, or mining, you don't want to miss out on the Energy Bill Discount Scheme under the Energy Trade Intensive Industries (ETII) criteria. This scheme offers relief to eligible businesses that struggle to cope with high energy bills, thanks to their energy intensity and trade exposure. With the deadline approaching on 24/07/2023, it's crucial to familiarise yourself with the key components and eligibility criteria of the Energy Bill Discount Scheme as soon as possible. Read on to find out how your business can participate and claim its energy bill discounts today.



Eligibility for ETII support


For an organisation to be eligible for ETII support, it must generate at least 50% of its revenue from UK-based activities within eligible Standard Industrial Classification (SIC) code sectors. The discount is applicable to 70% of energy volumes, provided a non-domestic contract has been signed with a licensed energy supplier. Eligibility is further extended to organisations with existing fixed-price agreements agreed upon on or after 1 December 2021, signing new fixed-price contracts, deemed/out of contract or variable tariffs, flexible purchase, variable 'Day Ahead Index' (DAI) tariffs (only for Northern Ireland scheme).


For local authorities, eligibility is determined at a premise level. In the absence of relevant financial accounts, the local authority must declare that 50% of the space in that premise is occupied by operations within eligible sectors. Similar to licensed energy providers, those who use energy from a license-exempt provider or are part of the Non-Standard Cases scheme must apply for support.


The higher level of support can be claimed within 90 days from the scheme introduction date of 26 April 2023, and new or newly eligible organizations will have 90 days following their eligibility assessment to apply. It is advised to apply for support even if the energy prices are currently below the threshold to receive the discount.


Your eligibility for the discount will be assessed based on the details and supporting documents provided in your application. You will be notified of the decision via email. If you qualify for the discount, a certificate outlining any necessary steps will also be sent to you via email.


ETIIs on a heat network


When an ETII is supplied by a heat supplier who is eligible for EBDS heat supplier support, the ETII need not apply for the discount. The heat supplier must claim the discount and transfer the benefits to the ETII customers.



Who are not eligible


The discount is not applicable to energy utilised for exporting substantial amounts of energy back to the grid, including any storage arrangements, except for specific combined heat and power schemes. Additionally, energy utilised to provide heating, hot water, or electricity to customers in the Republic of Ireland will not be eligible for the discount.



Before you start


You will need:

  • Contact details of the applicant (including email address and phone number)

  • Registered name and address of the organisation or business

  • Company registration number (CRN) (if applicable)

  • Up to 4 ETII eligible standard industrial classification (SIC) codes that relate to the organization's activities (See the list of eligible sector SIC codes)

  • Energy supplier names and the gas or electricity meter point numbers (MPRN or MPAN) associated with the property (found on bills from energy suppliers)

  • A template to record meter point numbers (if there are more than 10 meter point numbers per supplier)

  • The name of the organisation as it appears on the bill from energy suppliers

  • Details of any intermediary providers such as landlords (if the payments are not made directly to energy suppliers)

Providing supplier names and meter numbers during registration will accelerate the process of receiving the discount.


Evidence for your application


Signed director’s declaration letter

You will need to provide a letter signed by a named director or equivalent of your organisation or business.


Additional financial evidence

You may also need to provide further information if your business or organisation was not registered at Companies House with an eligible SIC code in December 2022.


The evidence is:

  • The most recent full set of end-of-year accounts (If not available, provide evidence of the most recent company accounts, covering a minimum period of the last 6 months)

  • An Income Statement referring to the same time period as the accounts

  • 20 sales invoices (no older than 12 months from the date of the signed declaration), demonstrating activity that falls within an eligible sector

  • License or trade body membership details for regulated industries, if applicable

  • Additional evidence to support the application

An external auditor or chartered accountant signed letter can be uploaded to assist with the application processing. It must confirm eligibility for the sector and confirm that at least 50% of your revenue generated from Great Britain and Northern Ireland is within an eligible sector. A template for the accountant's report is provided.


Sole traders


Sole traders who cannot provide all the other financial evidence should upload a sample of 20 sales and purchase invoices for the eligible activities.


Local authorities (including libraries)


Local authority applicants who cannot provide the financial evidence should upload floor plans of the relevant property, with accompanying measurements in square metres. This should show that 50% or more of your activities are in an eligible sector.



What you need to know


The decision about your eligibility for the discount will be communicated to you by email after reviewing your application details and evidence. If your application is approved, you will receive a certificate via email which provides all the necessary information and steps to obtain the discount.



Changes of circumstances


If there are any changes in your circumstances that may affect your eligibility for the discount or your supplier's capability to implement it, you are required to inform the EBDS customer support team. This can be accomplished by contacting our customer support team. Furthermore, if there are any alterations to the information on your certificate, you will need to reapply.



EBDS customer support


If you cannot apply online, phone the EBDS customer support team:


Email: support@ebds.beis.gov.uk Telephone: 030 0400 5251 Monday to Friday, 9am to 5pm



About the Energy Bills Discount Scheme support for Energy and Trade Intensive Industries (ETIIs)


It has been acknowledged that certain non-domestic energy consumers in Great Britain and Northern Ireland are more susceptible to the soaring energy prices as a result of their high energy consumption rate and involvement in trade. Hence, such sectors shall be given heightened assistance since they are incapable of transferring the expenses to the consumer due to the international competition.



The support you will be eligible to receive


Organisations are entitled to a reduction that corresponds with the difference between the price threshold and the appropriate wholesale price. The price thresholds are set at


£185 per MWh for electricity

£99 per MWh for gas.


However, this discount will only be applicable to 70% of energy volumes and will have an upper limit of £40.0/MWh for gas and £89/MWh for electricity. In cases where customers meet the eligibility criteria of the baseline, the standard level of support will be provided for the remaining 30% of energy volumes. To simplify the process, the discount will appear as a single line item on the bill, as suppliers will undertake one computation to determine the overall amount of discount owed.



Example discount calculation for a ETII customer


An individual consumes a monthly average of approximately 4 MWh of electricity. On 9 October 2022, they entered into a fixed price agreement, with a prevailing electricity unit rate of 61.2p/kWh (provided as an illustrative example).

How the discount is calculated

April

May

June

Electricity consumed (kWh)

4,130

3,929

4,041

​Fixed Electricity contracted unit prices p/kWh

61.2

61.2

61.2

Electricity Base Discount p/kWh

1.961

1.961

1.961

Electricity ETII Discount p/kWh

8.9

8.9

8.9

Weighted discount (70% ETII discount + 30% base discount) p/kWh

6.82

6.82

6.82

Electricity Bill

£2,527.56

£2,404.55

£2,473.09

Price Adjustment from EBDS

£281.67

£267.96

£275.60

Net Customer Bill

£2,245.89

£2,136.59

£2,197.50




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