Energy Bill Relief Scheme
What it means for you
The Government has introduced the Energy Bill Relief Scheme (EBRS). This scheme will apply a discount to energy usage between 1 October 2022 and 31 March 2023, based on the wholesale price of energy.
- Customers with a monthly Weighted Average Price (WAP) above the Government Support Price of £211/MWh will get a discount to this level (subject to a maximum discount of £345/MWh)
- WAP should include all fixes and unfixes for the period
- Discount applied at Meter Supply Point (MSP) to MPAN level kWh consumption.
- This discount will be calculated on a monthly basis
The following table give examples of how we calculate the discount.
| Customers monthly WAP | Goverment supported price | Discount | Max discount | Final discount |
|---|---|---|---|---|
| £200 | £211 | £0 | -£345 | £0 |
| £300 | £211 | -£89 | -£345 | -£89 |
| £400 | £211 | -£189 | -£345 | -£189 |
| £500 | £211 | -£289 | -£345 | -£289 |
| £600 | £211 | -£389 | -£345 | -£345 |
| £700 | £211 | -£489 | -£345 | -£345 |
Shaping costs – Drax are following BEIS guidance that WAP should not include any costs related to trading fees, volume tolerance, shape/imbalance premiums.
Cash-out contracts – Drax have followed BEIS guidance that cash-out residuals should be included in the WAP.
Eligibility criteria
If you’re on a Flex product, you are eligible for a discount based on your monthly baseload Weighted Average Price (WAP) between 1 October 2022 and 31 March 2023.
Any price reduction will depend on the difference between your monthly weighted average baseload price, determined by your individual hedging approach, and the government supported price of £211/MWh. The maximum support available per unit of energy will also be limited to £345/MWh.
We’ll compare your calculated WAP to the relevant Government Supported Price to calculate your discount.
The discount applied will be in pence per kilowatt hour (p/kWh), and at meter supply point. Cashing in or changing contracting positions or financial instruments, or other similar actions in order to maximise support under the scheme will impact eligibility.
More information regarding EBRS and eligibility can be found on the Government website.
What if you have additional energy market exposure?
If you have entered into any arrangements outside of your supply contract to manage risks associated with wholesale prices and are expected to use more than 0.5GWh a year or use more than 0.5MW in any half hour, then you need to be aware of part 4 of the EBRS Regulations. You can find more details on the Government's BEIS website.