The Energy Bills Discount Scheme seems like a great offer for those struggling to keep up with their energy bills, but is it too good to be true? Some have said that the no one actually gets the discount it offers as prices are lower than the cap. In this article, we’ll take a closer look at the scheme, exploring its benefits, and legitimacy.
Energy rebate offered by the scheme is too low?
The Energy Bills Discount Scheme (EBDS) is a new initiative introduced by the UK government to provide energy bill relief to eligible non-domestic customers. The scheme aims to help businesses manage their energy costs, particularly those in energy and trade-intensive industries that are particularly vulnerable to high energy prices.
While the scheme is a step in the right direction to help businesses struggling with energy costs, it’s worth noting that the assistance offered by the scheme may not be enough to offset the rising prices.
According to Ofgem, the UK energy regulator, the average price cap for standard variable and default energy tariffs, which covers about 11 million households in the UK, increased by 12.2% in October 2021. This means that energy bills for households have risen, on average, by around £139 per year.
The EBDS offers a discount on gas and electricity unit rates to eligible non-domestic customers, subject to a maximum discount per mwh. While the exact amount of the discount depends on the eligibility criteria, it is unlikely to match the price cap increase for households.
Furthermore, businesses may face other energy-related costs beyond their unit rates, such as network charges, metering costs, and renewable energy obligations, which are not covered by the scheme. Businesses that do not meet the eligibility criteria or that are not deemed energy-intensive may also miss out on the benefits of the scheme.
While the scheme may not provide complete relief from rising energy costs, it’s still worth exploring how businesses can benefit from it. Energy brokers can help businesses navigate the complex energy market and find the best deals to benefit from the EBDS. They can also help businesses manage their energy costs more effectively by providing tailored advice and solutions.
Energy cap paradox
Since April 1st, the Energy Bill Discount Scheme (EBDS) has been in operation, offering business customers a reduction in their electricity and/or gas bills if wholesale market prices surpass specific limit prices. The UK government has established these limit prices at 30.2p per kWh for electricity and 10.7p per kWh for gas, with lower ceilings for energy-intensive industries. The maximum discount applied will be 1.961p per kWh for electricity and 0.697p per kWh for gas. Based on the government’s assessment, the average wholesale price for the week beginning April 17th was 13.23p per kWh for electricity and 4.27p per kWh for gas. In order to receive any discount on new utility contracts, wholesale market prices would need to rise by 128% for electricity and 150% for gas, which is an undesirable outcome.
Energy rebate scams in the UK
Energy rebate and energy scheme scams are becoming more common in the UK, and it’s important to be aware of them to avoid falling victim to these scams. Scammers are targeting household energy bills by offering energy bill support or energy bill discounts, as well as non-repayable energy rebates.
The scam works by sending out fake text messages or emails to households, claiming that they are eligible for a discount on their energy bill. The message claims that the discount is available under the government’s energy bills support scheme, and that the recipient needs to apply for it. The message often promises a £400 energy discount, which can be paid in six instalments.
The scam text may contain a link to an official-looking website or a payment card, which the recipient is asked to click on. Alternatively, the message may ask for personal or financial information, such as bank details, in order to receive the discount.
However, these messages are not legitimate and are designed to steal personal and financial information. Once scammers have access to this information, they can use it to commit fraud or identity theft.
If you receive a text message or email claiming that you are eligible for an energy rebate or discount, be cautious. Contact the organisation directly, rather than clicking on any links or downloading attachments. The official website of the government’s energy bills support scheme is gov. uk, so you can check if the message is legitimate by visiting this website.
If you have already clicked on a link or given personal or financial information, contact your bank immediately to report the scam. You should also report the scam to Action Fraud on 0300 123 2040 or to your local trading standards or county council. In Northern Ireland, you can contact the Northern Ireland Consumerline on 0300 123 6262.
Remember, genuine energy suppliers will never ask for personal or financial information via text message or email. If you receive a message claiming to be from your energy supplier, contact them directly using the contact details on your energy account to verify the message’s authenticity.
Conclusion
In conclusion, the Energy Bills Discount Scheme (EBDS) is a new initiative introduced by the UK government to provide energy bill relief to eligible non-domestic customers. However, the scheme’s assistance may not be enough to offset the rising energy prices for businesses, particularly those that are not deemed energy-intensive or that do not meet the eligibility criteria. Energy rebate and energy scheme scams are also becoming more common in the UK, so it’s important to be cautious and check the legitimacy of any messages claiming to offer energy rebates or discounts. While the EBDS may not provide complete relief from rising energy costs, it’s still worth exploring how businesses can benefit from it with the help of energy brokers who can provide tailored advice and solutions to manage energy costs more effectively. To get assistance with the scheme, you can get in touch with a reliable energy broker or energy supplier.