Five tips for managing costs with the new Energy Bills Discount Scheme

The National Council for Voluntary Organisations (NCVO) share advice on what the Energy Bills Discount Scheme means for charities and top tips on how to cope with rising costs.

1. Find out if you're eligible for the Energy Bills Discount Scheme (EBDS)

The new scheme will be available to everyone on a non-domestic energy contract. This includes businesses, charities and public sector organisations such as schools, and hospitals. The scheme is available for those who are:

• on existing fixed price contracts that were agreed on or after 1 December 2021
• signing new fixed price contracts
• on deemed / out of contract or standard variable tariffs
• on flexible purchase or similar contracts.

The maximum discount that can be received is £19.61 per megawatt hour for electricity and £6.97 per megawatt hour for gas. Suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.

2. Check you're being charged the correct VAT rate

Charities are eligible for a reduced rate of VAT on fuel and power provided they are for:

• Residential accommodation
• Charitable non-business activities
• Small-scale use.

Check if you're eligible for a reduced rate and if this is being applied on your invoices.

3. Understand standing charges

Standing charges are fixed non-commodity charges. Non-commodity charges are fees your energy supplier adds to your bill for giving you access to energy. They're charges you pay before you use any energy.

The charges can vary a lot depending on your supplier, the type of energy and where you're based.

Standing charges are set to increase. The NCVO recommend looking at the supplier's standing charges before entering a new contract.

4. Get reliable advice on environmentally friendly energy sources

If you're looking to reduce your organisation's carbon footprint and be energy efficient, places to look for reliable information and advice include:

• The Energy Saving Trust
• Utility Aid's net zero and carbon reporting services

5. Know how the NCVO can help you

• Contact their Trusted Supplier, Utility Aid, if your charity or voluntary organisation needs help with managing rising energy costs. You can call 0808 1788 170, email ncvo@utility-aid.co.uk or visit the Utility Aid website.
• Watch the recording of our webinar with SCVO and Utility Aid.
• Their cost of living page signposts helpful guidance and includes recordings of previous cost of living crisis webinars.

Source and Image: NCVO