Energy Bills Support Scheme Consultation

Overview

On 3 February 2022, the Chancellor of the Exchequer announced a package of support worth £9.1bn to help domestic energy customers with the costs of rising energy bills. The Energy Bills Support Scheme (EBSS) was announced as part of this package. Through the Scheme, the Government will provide funding to all energy suppliers for them to pass a £200 reduction on to domestic electricity customers’ bills, which will be recovered through electricity bills over five years from 2023-24. This is a universal measure to help households smooth out the increased costs of energy bills at a time when they are particularly high.

The purpose of this consultation is to collect views on our proposals for the processes needed to provide the funding to energy suppliers, the mechanisms by which the reduction is passed on to consumers’ bills, and the recovery mechanisms.

We would particularly welcome views from energy suppliers, industry infrastructure providers, network operators, charities, and consumer advocacy groups, to test the design of the scheme to ensure that support is provided as widely as possible in a simple and cost-effective way, and that the recovery mechanism is clear and efficient.

The consultation will run from 11 April to 23 May 2022, with the government response expected to be published in the summer. The Scheme will be delivered by electricity suppliers from October 2022 and we expect that most customers will receive the reduction automatically. The government and suppliers will provide further information for customers ahead of scheme delivery before the autumn.

Read the consultation document on GOV.UK.