As your business is probably aware there is a new energy support scheme that will be in place from 1st April. The Energy Bill Discount Scheme (EBDS) will be taking over from the Energy Bill Relief Scheme(EBRS).
This change in energy policy could have a significant impact on businesses across the UK, especially those that have already been struggling due to the energy crisis. The Energy Bill Relief Scheme has offered protections against rising energy costs and subsidies for businesses protecting them from hefty bills. However, with its expiration comes the introduction of the new Energy Bill Discount Scheme. Whilst tasked with offering protection to businesses, many argue it will not be effective in reaching those most in need - leaving vulnerable businesses to potentially struggle even further. Moving forward, more must be done to ensure this new scheme is able to meet its goal and no one is left behind.
How does the new business energy support affect you?
The implementation of the EBDS will undoubtedly have a major effect on businesses, forcing many to rethink how they use energy. This significant reduction in support means that every penny counts when it comes to energy costs, leaving companies less money to invest elsewhere.
Businesses will now only receive support on their energy bills once energy prices reach a certain threshold price. This can be unsettling for businesses and may even lead some to search for more cost-effective solutions.
The thresholds and maximum level of discount are:
- For gas, the threshold is 10.7p/kWh, with a maximum discount of 0.697p/kWh.
- For electricity, the threshold is 30.2p/kWh, with a maximum discount of 1.961p/kWh.
Why now is the best time for your business to consider energy-efficient practices
The UK government are introducing a new support scheme to help businesses prepare for higher energy prices in the near future. This initiative was created in response to the risk of a 'cliff edge' occurring when many businesses would see a huge rise in energy bills without sufficient preparation and resources. This would undoubtedly place a strain on many organisations and could even result in some business closures. The government, recognizing the critical nature of this situation, is introducing a system that will give businesses more meaningful access to funding from which they can create long-term solutions for dealing with any financial fallout or difficulty. Ultimately, this will provide struggling businesses with additional resources and insights needed to successfully transition into a new higher energy price environment.
Implementing energy-efficient practices and infrastructure into businesses to transition into a higher-price environment is a smart and necessary transition for many organizations. Not only does this provide cost savings in the form of fuel and electricity, but it also helps to reduce emissions from their operations. Businesses can choose from an array of sustainable options, such as building materials with higher insulation values, motion sensors for lighting control, or renewable energy sources. Moving towards this type of strategy sets businesses up for long-term success in enhancing environmental sustainability while simultaneously increasing their bottom line. Companies that successfully transition into a higher-price environment through energy efficiency will reap the rewards of differentiating themselves in the market by taking action on reducing their carbon footprint despite increased costs.
How to protect your business from volatility in the energy market?
Becoming more energy independent can be a great way for businesses to prepare for the future. By reducing energy consumption and generating your own energy, you're taking a necessary step towards protecting yourself against rising energy prices. Sustainable sources of renewable energy are becoming increasingly accessible, with much of it being simpler to install than many business owners might think. Investing in renewable sources like solar or wind to generate your own energy can help you reduce reliance on the energy market, while also reducing the environmental impact of your business operations. The savings can also be used to invest in other parts of your business, leading to greater efficiency and increased competitiveness.
If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.
