More bill discounts for energy and trade intensive sectors
Energy and trade intensive businesses as well as heat network operators can from today apply for further support.
- Support for energy and trade intensive businesses opens for applications today, with savings of up to 20% on wholesale energy bills
- heat network operators also able to apply for additional support to help protect their customers from higher bills
- part of new government support package for businesses as wholesale energy prices fall
Some businesses could see their bills slashed by as much as 20% off predicted wholesale prices, thanks to further government support launched today (26 April) for sectors using high amounts of energy.
Applications have now opened for energy and trade intensive sectors that are most affected by the unprecedented rise in global energy prices to claim further discounts on their bills between 1 April 2023 and 31 March 2024 – helping deliver on the government’s priority to halve inflation.
Ceramics and textiles are among the wide range of sectors potentially in line to benefit. These companies use high amounts of energy to deliver their goods, but also are exposed to strong international competition, meaning they cannot raise their prices to cover the increase in costs they have faced.
Ministers are today urging companies to check their eligibility and submit their applications at the earliest opportunity, as the government continues its unprecedented support package that has protected businesses and as of April has saved them £5.9 billion on energy costs – over £30 million a day.
Minister for Energy Consumers and Affordability Amanda Solloway said:
We are beginning to see light at the end of the tunnel for global energy prices as Putin’s grip on the market weakens – but our vital energy and trade intensive industries remain uniquely exposed to these challenges.
We stand firmly behind British business and that’s why we’re protecting them with an additional offer of support so they can continue to thrive. I urge businesses to check their eligibility and submit an application right away so they can get the help they need.
Rob Flello, Chief Executive of the British Ceramic Confederation, said:
We welcome the fact government has recognised the on-going difficulties that the ceramics sector and other energy intensive industries are facing, and hope energy prices return to sustainable levels. We look forward to a smooth application process that recognises the variety of corporate structures amongst energy intensive businesses.
The offer is part of the government’s new Energy Bills Discount Scheme, launched this month, which will continue to automatically give businesses across the UK money off their energy bills - as wholesale energy prices fall to the lowest level since before Putin’s illegal invasion of Ukraine.
Businesses are advised to check GOV.UK as soon as possible to find out their eligibility and what they need to do to apply. Discounts could be reflected in bills from as soon as June, with support backdated to 1 April. This could save some around 20% on predicted wholesale energy costs.
Heat networks with domestic customers can also now receive a new, sector-specific support rate to make sure households do not face disproportionately higher bills compared to customers supported by the Energy Price Guarantee. Heat suppliers will need to apply for this rate and are legally obligated to pass on the discount to their customers.
This is just one of a range of ongoing schemes supporting households and businesses with energy costs at this time - which the government is urging all eligible customers to apply for and take full advantage of.
The Non-Domestic Alternative Fuel Payment scheme is providing top-ups starting at £750 for organisations using large quantities of kerosene heating oil, such as such as farms, hotels, charities and public buildings like schools and hospitals. Organisations have until 28 April to apply for this support via GOV.UK.
This scheme is also offering £150 payments to organisations using alternative fuels. A minority of those eligible will also need to apply for this extra support by 28 April if they have not received payments automatically through an electricity supplier.
Notes to editors
Energy and trade intensive businesses will need the following information and documentation to make their application for additional support for the Energy Bills Discount Scheme:
- their energy supplier name and meter numbers
- a completed declaration document signed by a named director or equivalent of your organisation or business confirming the eligibility criteria for the scheme has been met
- businesses may also need to provide evidence to determine eligibility, such as:
- most recent full set of end-of-year accounts
- an Income Statement referring to the same time period as the accounts
- a sample of 20 sales invoices, no older than 12 months from the date of the signed declaration, which demonstrates activity that falls within an eligible sector
- license or trade body membership details for regulated industries (if applicable)
- for local authorities only - floor plans of the relevant property that show that 50% or more of your activities are in an eligible sector
- a calculation showing that activities relating to eligible SIC codes, account for a minimum of 50% of your organisation’s revenue, reflecting the most recent accounts provided in your application
- to help with the processing of the application, businesses can also upload a letter from a person holding such professional qualification and accreditation as an accountant as the Secretary of State may specify. This should confirm that 50% or more of their revenue is in an eligible sector
- customers accessing support through the EBDS Non-Standard Cases will also need to check their eligibility for ETII or HN support and make an application
- full details on the Energy Bills Discount Scheme
- full information on energy and trade intensive industries support, including the methodology that was used to identify them
- full details of the Non-Domestic Alternative Fuel Payment scheme