Energy Bill Relief Scheme

(2 minutes to read)

The cost-of-living crisis is continuing to have such an impact on both individuals and businesses and now with the winter months looming, the rise in energy costs is another worry to add to the list.

For UK firms, they have the added concern about keeping their business afloat during these financially difficult times, and so the announcement of the Energy Bill Relief Scheme will be a great support for so many limited company contractors.

What is the Energy Bill Relief Scheme?

The new scheme is designed to help non-domestic energy customers by providing financial assistance on energy bills.

It took effect on the 1st of October and currently, the plan is for it to end on the 31st of March 2023. Discounts will be applied to gas and electricity unit prices during this timeframe.

Who is eligible for the Energy Bill Relief Scheme?

As mentioned previously, those on a non-domestic contract will be able to take advantage of this scheme and this includes businesses, voluntary sector organisations (such as charities) and public sector organisations (such as schools, hospitals and care homes).

Those who fall under these categories will need to be:

  • On existing fixed price contracts that were agreed either on or after the 1st of December 2021.
  • On signing new fixed price contracts.
  • On deemed/out of contract or variable tariffs.
  • On flexible purchase or similar contracts.

How much will my energy bills be?

The discount on your gas and electricity unit prices will be calculated by taking the estimated wholesale portion of the unit price you would be paying this winter, and then comparing it to a baseline ‘government supported price’ – this is lower than wholesale prices currently expected for the upcoming winter months.

The ‘government supported price’ will be the same amount across all suppliers and is set at:

  • Electricity – £211 per megawatt hour (MWh)
  • Gas – £75 per MWh

It is worth noting though that the absolute level of individual bills will continue to vary.

How can I claim for the Energy Bill Relief Scheme?

You won’t need to apply for the scheme, as the discount will be automatically deducted from your energy bills.

What happens after the scheme’s end date?

The support will continue until the 31st of March 2023 and what will happen after this date will all depend on the results of the government’s review.

The government plans to conduct a review of the scheme in three months and this is to assess the following information:

  • How effective the scheme has been in giving support to vulnerable, non-domestic customers.
  • Which groups of non-domestic customers remain vulnerable to energy price rises.
  • The extent to which the scheme could either be extended or further targeted.

Hopefully this page has answered some of your questions, but if you have any further queries, our team of experts are available to help, so give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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