Energy and Trade Intensive Industries (ETII’s) Relief Scheme. This scheme provides a baseline discount for organisations in Great Britain and Northern Ireland but only applies in some cases. Find out how these schemes affect your organisation here.
After the end of the Energy Bill Discount Scheme (EBRS) the government announced further support for businesses and organisations with the introduction of the Energy Bill Discount Scheme (EBDS), which will run from 1 April 2023 until 31 March 2024.
This scheme provides a baseline discount for all non-domestic organisations in Great Britain and Northern Ireland but only applies if the wholesale prices are above a certain threshold. The threshold has been set at £302/MWh for electricity (with the discount applicable of £19.61/MWh) and £107/MWh for gas (with the discount applicable of £6.97/MWh).
The EBDS baseline discount has been calculated as the difference between the wholesale energy price associated with an energy contract and the price threshold, and only applies to the unit price.
To receive the EBDS baseline discount there is no action needed as your energy supplier will calculate and apply it accordingly to your electricity and gas invoices.
Energy and Trade Industries (ETIIs)
The EBDS also gives an opportunity for certain business sectors and activities – classified as Energy and Trade Intensive Industries (ETII) – to receive a higher level of support.
On 27 March 2023, the Department for Energy Security and Net Zero (DESNZ) published a detailed document about the EBDS support for ETII's. The calculation of the ETII discount is using the same methodology as the EBDS baseline discount – a difference between the price threshold and the relevant wholesale energy price – however the thresholds and maximum discounts are more beneficial for ETII eligible companies.
The thresholds for ETII have been set at £185/MWh for electricity (with the discount applicable of £89/MWh) and £99/MWh for gas (with the discount applicable of £40/MWh).
The ETII discount will only apply to 70% of the volume of energy used, the remaining 30% will be subsidized with the base level of support if the organisation wholesale price meets the baseline eligible criteria (EBDS).
Are you Eligible and How to Apply?
If you are an eligible organisation in order to receive the additional higher level of support individual applications will be required as this is not automatically applied by the supplier. The application process has yet to be specified by the Department for Energy Security and Net Zero (DESNZ) which is expected in early April 2023.
The application period will have a limited time – 90 Days!
For the successful application your organisation has to meet the following eligibility criteria:
- Your activity has been classified as Energy and Trade Intensive (manufacturing, processing activities)
- The organisation should be able to prove that at least 50% of its revenue is from a UK based activity
- The organisation will be able to provide further additional information requested from the Department for Energy Security and Net Zero (DESNZ) e.g. the organisations eligible activities, energy supply contract information, etc.
How can NUS Consulting Group Support?
NUS Consulting Group will be able to support your organisation by:
- Identifying/confirming your eligibility to apply for the ETII discount
- Collecting/Providing the required additional information requested by the Department for Energy Security and Net Zero (DESNZ) to support your application
- Calculating the annual saving value achievable via the ETII scheme
- Providing professional consultancy support/assistance during the application process
For further information on how we can support your organisation and our service fees for this additional service please contact your NUS Consultant or the NUS Energy Services department:
- Email: UKenergyservices@nusconsulting.co.uk
- Web: www.nusconsulting.com/contact-us
- Phone: 01737 781 200
More: Energy Market Commentary, Energy and Trade Intensive Industries (ETII’s), Energy Bill Discount Scheme (EBDS)