Energy Bill Form

January 10, 2023

Government Scaled Back Energy Support Scheme

After the current business energy support scheme is set to end in April, the Government has now offered a scaled-back £5.5bn in government support to fight ongoing price increases. Costing the taxpayer £12.5bn less than the previous scheme.

What is the Scheme?

Rather than creating a cap for businesses’ energy prices, this new scheme will reduce the costs. Bills will automatically be deducted up to £6.97 per MWh for gas bills and up to £19.61 per MWh for the electricity bill. These discounts will only benefit businesses that already have high energy bills. When prices reach £107 per MWh for gas and £302 per MWh for electricity or higher will companies receive discounts.

A higher price threshold will be given to companies with high-intensity energy usage, such as manufacturers. They will receive discounts of £40/MWh for gas and £89/MWh for electricity. These businesses will receive discounts when gas costs £99 per MWh and electricity costs £185 per MWh.

Why do businesses need support?

This is a much-needed scheme for businesses, as prices continue to rise, prices are becoming more and more expensive. Over the past couple of years, there has been a domino effect of reasons for the rise in energy prices not only for businesses but domestic customers as well, meaning the government has come under huge pressure to help and support both of these types of customers.

The reaction to the scheme

There have been some negative reactions to the scheme, with the FSB (Federation for Small Businesses) calling it “out of touch.” The national chair of the FSB, Martin McTague said "Many small firms will not be able to survive on the pennies provided through the new version of the scheme." 

However, there have been some positive reviews of the scheme, with the CBI (Confederation of British Industry) saying "the scheme will provide respite for many firms at the start of the year and help them plan ahead for the next 12 months with more certainty".


Although the Government are supplying businesses with support, this sometimes just isn’t enough. This is why DBS is dedicated to helping as many businesses as possible perfectly manage their energy, take care of their bills, and reduce costs where possible. If you want guidance on your energy management or want to create the perfect energy contract for your business, talk to one of our experts today by clicking here or calling 0800 0315470

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