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The energy discount scheme aimed at providing additional support for Energy and Trade Intensive Industries (ETIIs) and heat networks will launch next week without an application portal for bulk uploads.
Instead an Excel spreadsheet has been launched as an “interim solution” for those submitting bulk applications for additional relief through the Energy Bills Discount Support (EBDS) scheme.
However, the government has admitted that the interim solution may not be fit for purpose for claimants looking to make larger applications.
The EBDS scheme officially launches next week (26 April), with discounts eligible to be backdated until the start of April. However the portal for ETIIs and heat networks to make larger applications for additional support is not yet ready.
A document put out by the Department for Energy Security and Net Zero (DESNZ) states that the portal is expected to be ready at “some point in May”.
In the meantime, an Excel template can be used to apply for additional support. However, the Excel document adds that “if you have a large number of suppliers and meter points, you may prefer to wait to apply for this discount until this [portal] is implemented.”
The EBDS scheme replaces the Energy Bills Relief Scheme (EBRS) and will run until the end of March 2024.
The cost of the replacement scheme will be capped at £5.5 billion.
Make UK senior energy and climate change policy specialist Brigitte Amoruso told Utility Week that the lack of an application portal could prove problematic if energy prices rise triggering a large number of claims.
“The delays to the portal and potential backlogs are arguably a chink in the armour but worse still is that many manufacturers will find themselves with no armoury whatsoever,” Amoruso said.
“Unlike its predecessor, the EBDS is not available to all, and is set at such a high level that it may not be triggered, as energy prices are lower than the threshold prices at this point in time.
“In the event that it would be triggered, the last thing manufacturers need is a delay to the portal which would leave eligible businesses without support.
“Energy costs remain the number one issue for UK manufacturers right now. As well as addressing issues surrounding the portal, the Government must look again to ensure there is sufficient support in place to help businesses survive.”
Under the EBDS, non-domestic customers will see unit discounts of up to £6.97/MWh and £19.61/MWh automatically applied to their gas and electricity bills respectively.
Those experiencing energy costs below £107/MWh for gas and £302/MWh for electricity will not receive support.
However, a more generous level of support in the new scheme will be available for ETIIs with the price threshold for these customers set at £99/MWh for gas and £185/MWh for electricity.
Discounts will only apply to 70% of such customers’ energy volumes and will be subject to a maximum discount of £40/MWh for gas and £89.1/MWh for electricity.
As well as heavy industries, like manufacturers and miners, the additional discount will also be available for key social facilities such as libraries, museums, zoos and historic attractions.
The scheme also aims to bring retail energy prices paid by heat suppliers down to a specific heat network Minimum Supply Price. This means there are no maximum discounts or wholesale price thresholds for heat networks.
Eligible organisations will have 90 days from the scheme introduction date of 26 April to apply for the higher level of support.
The scheme has previously been criticised for not offering more support to smaller businesses.
The Federation of Small Businesses (FSB) estimated that many small companies will receive just £50 under the scheme.
Martin McTague, national chair of the FSB, said: “Many small firms will not be able to survive on the pennies provided through the new version of the scheme”.
As the new support scheme gets underway, Desnz has also launched its search for a project manager to oversee the EBDS scheme “on a day-to-day basis”.
With a salary up to £61,000 per year, the job advert adds that the project manager will be “responsible for driving and overseeing the delivery of the project to ensure that the objectives are clearly defined and achieved within the agreed time, cost and quality constraints”.
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