Energy Bills Discount Scheme (EBDS)
The government has recently introduced the Energy Bills Discount Scheme (EBDS), which is set to run for 12 months from 1 April 2023 to 31 March 2024. This applies to non-domestic organisations that use energy, such as charities and care homes.
Two parts of the new scheme are relevant to Peabody, as a charity:
- The government may provide us with some support with energy bills as a baseline discount, and if awarded, this support will be applied automatically.
- There is a Heat Network discount provides a higher level of support to heat networks with domestic end consumers. We will need to apply for this discount.
These discounts will only apply if wholesale prices are above a certain price threshold. For most non-domestic energy users these threshold prices and maximum discounts have been set at:
- electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
- gas - £6.97 per megawatt hour (MWh) a price threshold of £107 per MWh
The discount is only applied to the wholesale element of the bill and therefore the final per unit price paid by non-domestic customers will differ as it includes other costs such as network charges and operating costs.
What this means for Peabody and our residents
The thresholds set by the government means the majority of our buildings will not be eligible for this discount. This is because our gas and electricity tariffs are lower than the maximum threshold. Where the tariffs do fall into the eligible thresholds, we will apply for the discounts and these will be applied retrospectively back to 1 April 2023. It is unlikely many sites will be eligible post 1 October 2023 due to the procurement of the new gas and electricity contracts.
We know that many residents are facing difficult times at the moment, with rising costs of living.
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