How will the Energy Bill Relief Scheme support my school?
Following the announcement of the governments new Energy Bill Relief Scheme, those across the business, voluntary and public sector are set to see significant assistance with the cost of gas and electricity over the next six months. Coming into effect from the 1st October, the new support scheme will help numerous non-domestic customers with the rising costs of fuel, including those in the education sector.
The scheme will apply to eligible customers on fixed contracts agreed from 1st December 2021 (previously announced as 1 April 2022), as well as to those on deemed, variable and flexible tariffs, and will discount energy usage from 1 October 2022 to 31 March 2023. The savings will be first applied to October bills, which are typically received in November.
My school is on a fixed-price energy contract, what does this mean for us?
Schools, colleges and multi-academy trusts that have fixed-price contracts will be eligible for government support as long as their contract was agreed on or after 1st December 2021, and if the wholesale element of the price they are paying is above the Supported Price of £211/MWh for electricity, and £75/MWh for gas.
School’s already in a contract with their energy provider won’t need to do anything themselves, as their per-unit energy costs will automatically be reduced by the relevant p/kWh until 31st March.
For example, a school using 10 MWh of electricity and 22 MWh of gas a month, who signed a fixed contract in July 2022, has a current monthly energy bill of about £10,000. When they signed their contact, wholesale prices for the next 6 months were expected to be higher than the Government Supported Price, meaning they can receive support under the Energy Bill Relief Scheme.
The difference between expected wholesale prices when they signed their contract and the Government Supported Price is worth £240/MWh for electricity and £70/MWh for gas, meaning they receive a discount of £4,000 per month, reducing their original bill by 40%.
My school will enter a new contract after the 1st October – will we still be supported?
If your school enters a new fixed-price energy contract after 1st October, it will still be eligible for the same support as above. It’s still important to find the best deal for your energy though, as after 31st March, the price will revert to the deal agreed, unless the government announces further support.
What if my school is on a deemed, flexible or variable tariff?
Under the new scheme, schools on deemed, flexible or variable tariffs will receive a per-unit discount on energy costs. This discount will be the maximum of the difference between the Government Supported Price and the average expected wholesale price, over the period from 1st October to 31st March.
The reduction on bills will therefore change over time and schools may still be subject to price increases. For this reason, all non-domestic customers are being encouraged to take out fixed-price contracts for the duration of the scheme, in order to receive the full benefits.
What will happen to energy bills after 31st March?
The Government’s Energy Bill Relief Scheme will initially run for a 6 month period, with support ending after 31st March. However, they are looking to publish a review into the scheme after 3 months, in order to “inform decisions on future support”.
How can Yü Energy support schools?
If you’re looking for a new energy supplier for your school, or if you would like to take out a fixed price contract in order to make the most of the government support scheme, our competitively priced, fully fixed plans mean there are no nasty surprises. From schools to colleges, universities to multi-academy trusts, we offer bespoke and tailored solutions with fair and transparent pricing, allowing educators to concentrate on what matters most, their pupils. To get a free, instant quote, click here or call one of our friendly advisors on 0115 971 7427.