Will the UK business energy bill scheme cost a third of Treasury estimate?

By the middle of March, energy suppliers received £5.9 billion from the Energy Bills Relief Scheme, significantly lower than the £18.4 billion forecasted cost

The UK Government’s winter energy support scheme for businesses cost only a third of what the Treasury estimated.

Government data shows that until mid-March, UK energy suppliers received a total of £5.9 billion from the Energy Bill Relief Scheme (EBRS), significantly lower than the £18.4 billion forecasted cost.

In November 2022, the EBRS was estimated to cost £18 billion by the Office for Budget Responsibility (OBR), but the OBR revised the figure down to £7.3 billion in March 2023 due to lower-than-expected wholesale prices during the covered period.

ELN has reached out to the Treasury and the Department for Energy Security and Net Zero for comment.

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