CBI @10am: Dealing with energy challenges this winter and beyond

The government kicked off the new year by announcing a new Energy Bills Discount Scheme, which will replace the Energy Bill Relief Scheme due to expire in March. It offers firms some continued respite from the pressure of high energy prices, but can’t be expected to solve the challenges they face.

So our first CBI@10am of 2023 was devoted to these energy challenges – and what firms can do to best deal with them.

Speakers

• Syma Cullasy-Aldridge (CBI Chief Campaign Director)
• Tom Thackray (Programme Director - Decarbonisation, CBI)
• Juliette Sanders (Director of Strategic Communications, Energy UK)
• Paul Glendinning (Policy and Markets Director, Northern Powergrid)
• Neil Hodgson (Deputy Director Energy Intensive Industries and EBRS Review team, BEIS).

Here’s a taster of their advice:

1. What is the EBDS?

Neil Hodgson outlined what the new Energy Bills Discount Scheme (EBDS) entails. We have distilled the key information in this explainer. Firms don’t need to do anything to sign up for the scheme; the standard discount will be universally applied to all businesses via their suppliers when the price per unit goes above a certain level. But energy- and trade-intensive businesses are eligible for more support – and they may need to register. Government will outline more information on this soon.

2. What can companies do?

Juliette Sanders gave the economic case for energy efficiency. This included steps firms can take for themselves, such as having better heating, lighting, and manufacturing processes, as well as how they can make use of local council and regional grants where there is funding available. The government has an equipment technology list, highlighting energy efficient plant and machinery which companies can adopt. And firms might want to consider installing renewable generation themselves – the Smart Export Guarantee scheme is available for small-scale carbon generation.

3. What can the UK do to improve energy efficiency now to prevent long-term challenges?

Paul Glendenning outlined the need for the UK to address the energy security challenge. CBI Director Tom Thackray pressed on the ways government can drive greater resilience for business to deal with higher energy costs, looking towards energy efficiency. These include ensuring the tax system supports firms to become more energy efficient, particularly by looking at capital allowances and what comes next after the end of the super-deduction in 2023, and further reform of the business rates system.

Watch the webinar below for more details – and keep track of our campaign for managing rising costs – for ongoing advice.