On the 9th January, the UK government announced that the financial assistance towards energy bills for businesses, charities and public sector will be extended beyond the current scheme, which is due to end in March 2023, to March 2024.
The extension is a welcome relief for many, however, it highlights the need for long term solutions. Wattstor’s CEO, Stephan Marty, comments:
“This is a short-term fix for a longer term issue. There will inevitably be extreme market volatility in the future, so whilst the government and Ofgem will need to ensure the market remains fair in the current conditions, businesses will need to think about how they mitigate these costs after the government support ends. The new scheme provides support until 31st March 2024, which should enable businesses to implement new energy strategies in time for the scheme ending, helping them to withstand the hostile market conditions further down the line.”
“Businesses can change tact, the government can deliver support, and Ofgem can keep the markets in check, however some onus needs to be pushed to suppliers – they need to ready their customers for this new world of energy. Not just the large corporates that use many GWh per year, these businesses that have the ability to employ internal resource dedicated to shifting their energy strategy, but every business at every scale. With 5.5 million SMEs in the UK, these businesses underpin our economy and speak to the entrepreneurial spirit of the UK. Tragically, the energy crisis as it stands today threatens to take many of them under.”
“Wattstor strongly advocates for businesses taking control of their energy by optimising on-site generation, load and storage for the markets. This is why we work with select suppliers to provide opportunities to SMEs to actively participate in energy markets, protect their bottom-line in the harsh face of the current energy climate, and essentially shorten ROI timescales on energy projects. Wattstor will continue to advocate for the SME, to bring them the technology and expertise that will deliver the same economies of scale that the large corporates can take advantage of.”
The shift in energy landscape and markets needs to be met with a shift in mindset, and that mindset needs to move away from simple cost-driven efficiencies and towards optimised markets.
Quoted from Wattstor’s blog:
The electrification paradigm, low-hanging fruit, and the energy trader mindset
Energy Bill Discount Scheme summary
For eligible non-domestic customers who have a contract with a licensed energy supplier, the government is announcing the following support:
- From 1 April 2023 to 31 March 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.
- This will be subject to a wholesale price threshold, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.
- Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.
For more information on how Wattstor works with electricity suppliers, installers and SMEs, contact our team, or join our upcoming webinar…
Header image credit: Photo by Massimiliano Morosinotto on Unsplash