The Energy Bill Relief Scheme is providing some temporary support for businesses dealing with the increase in energy prices. But when the scheme ends, it’s what you do now to reduce energy costs that will really pay dividends.

UK Energy Bill Relief Scheme

 

What is the Energy Bill Relief Scheme (EBRS)?

It’s a temporary scheme that discounts the price of energy businesses use. It’s already in operation and will end on 31 March 2023.

> Discover more about Energy Bill Relief Scheme (EBRS)

 

How much difference with the EBRS make?

Potentially a significant amount. It’s not a cap, strictly speaking, but it does limit the price that suppliers pay for wholesale electricity to 21p per kWh and 7.5p per kWh for gas. It then cuts the amount businesses pay by the same amount up to a maximum discount of 34.5p per kWh for electricity and 9.1p per kWh for gas. It is, therefore, possible for businesses to pay more than the above amounts where the maximum discount is exceeded. Even with the discount applied, you’ll still be paying around double for your energy per megawatt hour compared with this time last year.

Nevertheless, it’s a welcome break—especially for business that use air compressors—as compressed air accounts for about 10% of all the energy consumed by industry.

 

What happens next?

At time of writing there’s an autumn statement due, and we don’t know what extra help may be on offer to businesses once the EBRS ends. The noises coming from Westminster are that the level of help will not be as generous come spring. We also know that, even if the support does remain roughly as it is now, energy remains punishingly expensive for many businesses and that isn’t likely to change in the medium term.

That’s especially the case for businesses using air compressors because, although compressed air accounts for 10% of industrial energy usage, it accounts for about 30% of the total energy bill for those businesses which use air compressors. It’s vitally important, therefore, that every business running a compressor takes steps now to ensure that, come next spring, its energy performance is as efficient as it can possibly be.

> Discover more about Energy Bill Relief Scheme (EBRS)

 

Cut your air compressor energy usage by 10%

That’s why Algar Air joined the British Compressed Air Society’s (BCAS’) 10% Taskforce campaign. We’re helping business owners take simple steps to cut their compressed air energy figure by 10 per cent, by reducing wasteful and inefficient practices.

Executive Director of BCAS Vanda Jones. says:

“At the time we launched the campaign in April this year, we could not have predicted the huge rise in the wholesale gas and electricity prices. Our original calculations of £485.43 million being spent in wasted electricity have now risen two or even three-fold – meaning that the assistance now being offered through the Energy Bill Relief Scheme is vital.

“Since the launch, our members have been speaking with customers to encourage them to take action and to dispel some of the commonly-held beliefs that saving energy will require significant investment in new capital equipment. Taking small, incremental steps can have a significant impact on reducing energy consumption.”

Algar Air’s Simone Kidd adds: “We want to help local businesses put the best practices in place to ensure that, now and especially come next spring, they are best placed to weather energy price rises. That may be a matter of fixing air leaks, keeping servicing up to date so compressors run more efficiently, or implementing better housekeeping routines to avoid wasteful practices. Our goal is to help businesses save 10% on their compressed air energy bill. The reality is that, for some businesses, taking action now could deliver significantly more than that.”

To find out how we could help reduce your energy costs, please get in touch.

 

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