How the Energy Bills Discount Scheme Affects the Beauty Industry

The Energy Bills Discount Scheme (EBDS), which will replace the current Energy Bill Relief Scheme (EBRS) from 31 March 2023, provides discounts on wholesale prices of up to £6.97 per megawatt an hour for electricity and £19.61 per megawatt an hour for gas for businesses with an energy contract. The EBDS was introduced because wholesale energy costs have fallen back to where they were before Russia’s invasion of Ukraine and almost halved since the current scheme was announced.

The government has announced that the new scheme will run from April 2023 to March 2024 and businesses will receive the discount automatically. The government estimates that a typical pub will save £2,300 off their annual bill and small retailer will save around £400.

This new support will give businesses with an energy contract discounts on wholesale prices of up to £6.97 per megawatt an hour for electricity and £19.61 per megawatt an hour for gas. This is much less than the current discount because wholesale energy costs have fallen back to where they were before just before Russia’s invasion of Ukraine and almost halved since the current scheme was announced. 

However, many hair and beauty businesses have said that the discount may not be enough to offset the rising energy costs that they are facing. Energy costs are often the first or second largest outgoing for hair and beauty salons and barbershops and this reduced support may not be enough to help many keep the doors open and lights on beyond March 2023.

In light of this, it's important for beauty therapists and business owners in the hair and beauty industry to explore other ways to reduce energy costs, such as energy-efficient equipment and practices, to ensure financial sustainability in the long term.