The Energy Bill Discount Scheme (EBDS) was scheduled to conclude on 31st March, and until now, there was uncertainty regarding its extension.
However, Jeremy Hunt did not address the EBDS during the Spring Budget, indicating that the scheme will indeed come to an end by the end of this month.
Chris Shaw, Chair of the Energy Consultants Association (ECA) and Chief Executive Officer at UtilityBidder, characterised the scheme as a “token gesture” rather than a substantial assistance for SMEs.
Chris Shaw said: “There has been no extension of the EBDS for small businesses beyond 31st March 2024 in the 2024 budget announcement.
“The EBDS for small businesses became pretty much redundant and was ineffective in supporting the vast majority of small businesses anyway, it felt like a token gesture rather than a scheme to actually help SMEs.
“While the ECA supports initiatives benefiting small businesses and acknowledging the frequent shifts in wholesale energy, we believe extending the EBDS beyond its original end date would not have provided additional value.
“Some small businesses have suggested that they hoped something would be announced in the budget allowing businesses to be liberated from high contracts that they have previously signed to benefit from the lower wholesale rates.
“Whilst we understand the notion, in practice, we also acknowledge that energy suppliers could not feasibly do this because it would cause financial harm due to the way energy is procured”
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