The Government has announced a new energy bills discount scheme (EBDS) for UK businesses, set to replace the current energy bills relief scheme (EBRS) once it ends in March.

The new support package will last from 1 April 2023 to 31 March 2024, giving organisations a discount on high wholesale prices instead of a cap on energy costs.

The new system means that firms will benefit from support in proportion to their energy usage.

As with the current scheme, eligible organisations do not need to apply for the discount and will automatically receive reductions to their bills.

Businesses in industries with particularly high energy usage and trade intensity, such as manufacturing, will receive a "substantially higher" level of support.

Wholesale energy prices are falling and have returned to levels just before the Russian invasion of Ukraine.

According to Chancellor Jeremy Hunt, the continuation of support, albeit less generous, will "provide reassurance against the risk of prices rising again...giving businesses the certainty they need to plan ahead".

The Chancellor has also written to energy watchdog Ofgem to see if further action is needed to prevent energy companies from passing costs onto businesses.

Experts claim new package falls short

While the continued support for businesses across the country has been welcomed, there are some who feel it hasn't gone far enough.

Shevaun Haviland, director for the British Chamber of Commerce (BCC), says that the value of the new package is "nowhere near far enough and means that for some firms, energy will now be a cost too far".

"We understand the Government must consider public finances, but any support package, short or long term, should be right for business - otherwise, we're going around in circles.

"The wrong type of support will continue to see business confidence deplete and the Government having to revisit its package."


The BCC urged the Government to increase OFGEM's powers, prioritise energy production, and legislate for green grants and tax incentives.

On its decision to switch from a relief scheme to a discount approach to help businesses cope with high energy costs, the Treasury said:

"The Government has been clear that such levels of this support, unprecedented in its nature and huge scale, were time-limited and intended as a bridge to allow businesses to adapt."

Further support for businesses

Over the coming years, the Government aims to support businesses outside of the rising energy costs.

A package to support businesses with their business rates, worth £13.6bn, will be in place over the next five years. There will also be a six-month extension to the alcohol duty freeze as well as the £2.4bn fuel duty cut.

Any business with profits below £250,000 will also be protected from the upcoming corporation rate rise, with those making less than £50,000 not having to pay a corporation tax increase at all.

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