Business Energy Glossary
What was the Energy Bill Relief Scheme (EBRS)?
The Energy Bill Relief Scheme (EBRS) was the UK government scheme providing temporary discounts on business gas and electricity bills from 1 October 2022 to 31 March 2023. EBRS was introduced in response to the wholesale price spike following Russia invasion of Ukraine and provided a flat rate discount applied to all non-domestic customers regardless of size, sector, or supplier. The scheme capped the wholesale element of business bills at 21.1 p/kWh for electricity and 7.5 p/kWh for gas. EBRS was succeeded by the Energy Bills Discount Scheme (EBDS) from 1 April 2023, which provided a much smaller and more targeted level of support.
EBRS provided unprecedented government support for UK business energy costs and shaped supplier contract pricing during the 2022-23 period. Understanding EBRS matters for interpreting historical bills, contract pricing, and the policy approach that followed.
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What EBRS provided
EBRS capped the wholesale element of business energy bills at:
- Electricity. 21.1 p/kWh (around half the prevailing wholesale forward price).
- Gas. 7.5 p/kWh (similar relationship to gas forward prices).
The discount applied automatically to all eligible bills. Customers did not need to apply. The supplier calculated the discount and reduced the bill accordingly; the supplier was then reimbursed by the government for the discount amount.
Who was eligible
EBRS covered all non-domestic UK customers:
- Businesses of all sizes (micro, SME, mid-market, large).
- Voluntary sector organisations, charities, schools, hospitals, public sector.
- Customers on fixed contracts (signed before 1 December 2021) and variable contracts.
- Customers on out-of-contract or deemed rates.
Domestic customers had separate support under the Energy Price Guarantee, which operated in parallel but used a different cap structure.
How the discount was applied
The mechanism:
- The supplier calculated the wholesale element of the bill.
- If the wholesale element exceeded the capped rate, the supplier applied the discount equal to the difference.
- The supplier submitted the discount claim to the government for reimbursement.
- The bill was reduced before being issued to the customer.
Customers saw the discount as a separate line on the bill clearly labelled as EBRS support. The discount was paid via the supplier rather than directly to the customer.
Cost to government
EBRS cost an estimated £7 billion over its six-month period, depending on actual wholesale prices. The scheme was the largest single business support programme since the COVID furlough scheme.
EBRS was funded directly from the Exchequer (not through customer levies). The cost is borne by general taxation rather than future energy bill payments.
End of EBRS
EBRS ended on 31 March 2023, replaced by the Energy Bills Discount Scheme (EBDS) from 1 April 2023. The transition reflected:
- Wholesale prices had fallen substantially from the autumn 2022 peak.
- The government wished to reduce the fiscal cost of business energy support.
- Targeted support for Energy and Trade Intensive Industries (ETII) was considered more efficient than universal coverage.
EBDS provided a much smaller discount (1.961 p/kWh electricity, 0.697 p/kWh gas for standard businesses) and additional support for ETII sectors. EBDS in turn ended on 31 March 2024.
Lessons from EBRS
Key observations from the EBRS period:
- Business contracts signed at the wholesale price peak (autumn 2022) included EBRS-reduced rates; many of these contracts run into 2025 and have ended at much higher rates than current wholesale prices would imply.
- Customers on out-of-contract or deemed rates during EBRS received discount on those higher rates; the relief did not eliminate the deemed rate premium.
- The scheme demonstrated supplier capacity to apply complex discounts at scale, paving the way for more targeted support mechanisms.
- Direct fiscal support for energy bills has now ended; future policy emphasis is on insulation, efficiency, and market reform rather than discount schemes.
What was the Energy Bill Relief Scheme (EBRS) FAQs
What was the Energy Bill Relief Scheme?
A UK government scheme providing temporary discounts on business gas and electricity bills from 1 October 2022 to 31 March 2023. EBRS capped supported wholesale rates at 21.1 p/kWh for electricity and 7.5 p/kWh for gas.
When did EBRS run?
From 1 October 2022 to 31 March 2023, a six-month period during the height of the wholesale price spike following Russia invasion of Ukraine.
Who was eligible for EBRS?
All non-domestic UK customers including businesses of all sizes, charities, schools, hospitals, and public sector. Coverage was universal regardless of size, sector, or contract type.
How was the EBRS discount applied?
Automatically by the supplier. The discount appeared as a line on the bill labelled as EBRS support. Customers did not need to apply; the supplier calculated and applied the discount, then claimed reimbursement from the government.
What replaced EBRS?
The Energy Bills Discount Scheme (EBDS) from 1 April 2023, providing a much smaller flat-rate discount (1.961 p/kWh electricity, 0.697 p/kWh gas) and additional support for Energy and Trade Intensive Industries (ETII). EBDS ended on 31 March 2024.
How much did EBRS cost the government?
Around £7 billion over the six-month period. EBRS was funded directly from the Exchequer (general taxation) rather than through customer bill levies.
Did EBRS reduce all business energy bills?
EBRS reduced the wholesale element. Bills also include network charges, environmental levies, supplier margin, and VAT, which were not reduced by EBRS. The total bill reduction varied by contract structure.
Is EBRS still available?
No. EBRS ended on 31 March 2023. The successor scheme EBDS also ended on 31 March 2024. There is currently no equivalent UK business energy support scheme.