The conclusion of the UK Government’s Energy Bills Discount Scheme (EBDS) on March 31st marked the end of direct financial relief for businesses, in the face of high energy costs.
While the EBDS provided temporary relief in an exceptional period – following the COVID pandemic, rising inflation, and a global cost of living crisis – its conclusion underscores the lack of a long-term strategy for businesses contending with elevated wholesale energy prices.
Post-EBDS, there’s a clear demand among businesses for increased incentives to enhance energy efficiency and to implement on-site renewable energy solutions.
What was the Energy Bills Discount Scheme?
On April 1st, 2023, the Energy Bills Discount Scheme came into effect, marking the retirement of the Energy Bill Relief Scheme.
Unfortunately for small businesses, the new scheme did not quite equate to new savings, as the Energy Bills Discount Scheme had been capped at £5.5bn of available support.
By comparison, the outgoing Energy Bill Relief Scheme had provided as much as £18bn to non-domestic energy consumers.
Will British businesses get help with energy bills in 2024?
Late last year, the government detailed the distribution of the £6 billion dedicated to energy efficiency improvements announced in the 2022 Autumn Statement.
This allocation includes £225 million for the Industrial Energy Transformation Fund and £1.25 billion for the Public Sector Decarbonisation Scheme, with an additional £410 million earmarked for ‘Industrial Energy Efficiency and Decarbonisation.’
However, details on the deployment of these funds remain sparse, and the actual funding won’t be accessible until 2025.
This delay creates a critical void in support, leaving businesses – that are still operating in difficult market conditions – in need of immediate assistance to boost energy efficiency and contribute to the UK’s net zero goal.
As we navigate an essential election year, it’s crucial for the concerns of the business community to be addressed.
However, and as a direct result of the upcoming general election, many projects such as these have had their funding commitments kicked into the long grass.
While recent announcements have brought some relief, the prevailing sentiment is that more robust measures are necessary, especially to aid small businesses and SMEs in actively reducing energy usage and investing in sustainable practices.
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
