It is a requirement for all heat network owners to apply for EBDS by 31st March 2024 and pass on any discounts to customers. Read more about what building owners need to do.
The Energy Bills Discount Scheme (EBDS) replaced the Energy Bill Relief Scheme (EBRS) and was introduced to make sure that customers on a heat network are not paying disproportionately higher bills compared to customers receiving support from the Energy Price Cap.
Heat suppliers that have heat networks with residential customers are required by law to apply for the EBDS by the deadline of 31st March 2024. Failure to do so could result in enforcement and fines of up to £5,000 per heat network. The EBDS runs from 1st April 2023 to 31st March 2024. Eligible heat network owners will receive a discount which is passed onto customers on energy used between these dates.
How the discount is calculated
Under the scheme, heat networks will benefit from a discount on non-domestic gas and electricity unit rates. Heat network owners purchase energy (gas and electricity) at a wholesale price through a commercial contract to produce heat which is supplied to customers on heat networks. The scheme caps the wholesale price of gas and electricity. The discount is then calculated as the difference between the wholesale price and the scheme price cap. Whilst the wholesale cost of gas is capped, the cost of heat that the end customer pays is not the wholesale price and is usually based on a tariff set by the heat network supplier. The tariff will include other charges such as billing, plant maintenance and the cost to convert energy to heat and losses during distribution. However, heat network owners are obliged to pass on any EBDS discount to their customers.
How customers receive the discount
Once an application is submitted and a heat network is registered, verified heat suppliers will receive a qualifying heat supplier certificate which is passed on to the energy supplier who applies the discount to the heat network owners’ bills. The discount received by the heat supplier must be passed onto customers. Any discount received is backdated to 1st April 2023 or the date that the heat network became eligible.
How to apply for EBDS
Heat suppliers need to apply for the EDBS using the online portal on the government’s website. Once you start the application you need to complete it in one session as the form does not allow you to save and continue with it later. Before you apply, it’s good idea to gather all the information you will need to provide, including any documents you’ll need to upload. For more information and to check what you’ll need, you can visit the government’s website.
To apply or find out more, visit the government’s website. We’ve also included some Frequently asked questions below to help answer some common queries. If you need any help with completing your EBDS application, our experienced team are on hand to support you. Just get in touch and we’ll be happy to help.
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What is a heat supplier?
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What if I have more than one heat network?
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