The Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2025
These regulations amend the Energy Bill Relief Scheme and Energy Bills Discount Scheme Regulations, clarifying and limiting supplier obligations to provide energy discounts after a defined date.
The amendments also adjust processes for dealing with disagreements between energy suppliers and customers and extend a specified timeframe within the Energy Prices Act 2022.
The changes primarily aim to streamline administration and provide clarity for energy suppliers while maintaining the targeted provision of energy support to customers.
Arguments For
Improved Clarity and Efficiency: The amendments clarify the end date for supplier discount duties, streamlining administration and reducing potential disputes.
Reduced Regulatory Burden: By limiting the scope of discount duties after a specific date, the regulations reduce the administrative burden on energy suppliers.
Fairer Treatment of Suppliers: The amendments offer a more equitable approach by considering reconciliation run-off dates, allowing suppliers to transition out of the schemes more smoothly.
Alignment with Policy Objectives: The changes align with the government's aim to provide targeted energy support while maintaining fiscal responsibility and efficient scheme administration.
Legal Basis: The regulations are made under powers conferred by sections 9 and 26 and Schedule 5 of the Energy Prices Act 2022, providing a clear legal framework for the changes.
Arguments Against
Potential for Confusion: The amendments introduce a new ‘discount duties end date,’ which may create confusion for suppliers and customers who need to understand the new rules.
Risk of Unintended Consequences: Restricting the discount duties could inadvertently leave some customers without the intended energy support, particularly those with delayed billing or complex contractual arrangements.
Enforcement Challenges: Ensuring compliance with the amended regulations, and particularly the exceptions for delayed billing, could pose significant challenges for regulators.
Alternative Approaches: Some might argue there are alternative mechanisms to achieve the same policy goals, such as a more comprehensive billing system or focused support for vulnerable consumers.
Limited Scope: The amendments focus on specific sections of existing regulations, potentially leaving other areas that need improvement unaddressed.
Part 1Introductory
Citation, commencement and extent1.
(1)
These Regulations may be cited as the Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2025 and come into force 21 days after the day on which they are made.
(2)
Part 1 of these Regulations extends to England and Wales, Scotland and Northern Ireland.
(3)
Parts 2 and 3 of these Regulations extend to England and Wales and Scotland.
(4)
Part 4 of these Regulations extends to Northern Ireland only.
This part introduces the regulations.
It provides the title and effective date (21 days after enactment).
Part 1 applies across the UK, Parts 2 and 3 to England, Wales, and Scotland, and Part 4 solely to Northern Ireland.
Part 2Amendment of the Energy Bill Relief Scheme Regulations 2022
Amendment of the Energy Bill Relief Scheme Regulations 20222.
The Energy Bill Relief Scheme Regulations 20222 are amended as follows.
Amendment to regulation 19 (duty of suppliers to provide the discount)3.
In regulation 19, after paragraph (3) insert—
(3A)
Subject to the exceptions in paragraph (3B), the duties in paragraphs (1) and (3) (the “discount duties”) do not apply to a supplier on and after the date (the “discount duties end date”) which is the later of—
(a)
the reconciliation run-off date in respect of that supplier, or
(b)
the date the Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2025 come into force.
(3B)
The discount duties continue to apply to a supplier on and after the discount duties end date in relation to energy—
(a)
in respect of which the supplier has billed the customer before the discount duties end date,
(b)
supplied in a billing period in respect of which the supplier has not billed the customer before the discount duties end date, or
(c)
in respect of which unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties end date.
Amendment to regulation 39 (adjustment of discount in relation to arrangements which alter a customer’s exposure to the wholesale price)4.
In regulation 39, after paragraph (1)(d) insert—
(e)
on and after the discount duties end date for a supplier, sub-paragraph (d) is to be read in relation to that supplier as though the words “in relation to a variable price contract” were omitted;
(f)
sub-paragraph (e) does not apply to a supplier in relation to energy—
(i)
in respect of which the supplier has billed the customer before the discount duties end date,
(ii)
supplied in a billing period in respect of which the supplier has not billed the customer before the discount duties end date, or
(iii)
in respect of which unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties end date;
(g)
in sub-paragraphs (e) and (f), “discount duties end date” has the same meaning as in regulation 19(3A).
Amendment to regulation 63 (referrals in respect of disagreement between contract parties)5.
In regulation 63—
(a)
at the beginning of paragraph (3) insert “Subject to the exception in paragraph (3A),”;
(b)
after paragraph (3) insert—
(3A)
Where the disagreement is not resolved and the matter concerns a determination made by the supplier under or by virtue of regulations 19(3A) and (3B) or 39(1)(e) and (f)—
(a)
paragraph (3) does not apply, and
(b)
the supplier's determination remains effective.
This part amends the Energy Bill Relief Scheme Regulations 2022.
Regulation 3 modifies the supplier's duty to provide discounts, limiting it after a specific 'discount duties end date' with exceptions for previously billed energy, unbilled energy, or energy where supplier error caused delayed billing.
Regulation 4 similarly amends the rules for adjusting discounts based on contract arrangements altering customer wholesale price exposure.
Regulation 5 modifies the referral process for contract disputes, exempting certain supplier determinations from referral to the Secretary of State.
Part 3Amendment of the Energy Bills Discount Scheme Regulations 2023
Amendment of the Energy Bills Discount Scheme Regulations 20236.
The Energy Bills Discount Scheme Regulations 20233 are amended as follows.
Amendment to regulation 30 (duty of suppliers to provide the discount)7.
In regulation 30, after paragraph (3) insert—
(3A)
Subject to the exceptions in paragraph (3B), the duties in paragraphs (1) and (3) (the “discount duties”) do not apply to a supplier on and after the date (the “discount duties end date”) which is the later of—
(a)
the reconciliation run-off date in respect of that supplier, or
(b)
the date the Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2025 come into force.
(3B)
The discount duties continue to apply to a supplier on and after the discount duties end date in relation to energy—
(a)
in respect of which the supplier has billed the customer before the discount duties end date,
(b)
supplied in a billing period in respect of which the supplier has not billed the customer before the discount duties end date, or
(c)
in respect of which unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties end date.
Amendment to regulation 49 (adjustment of discount in relation to arrangements which alter a customer’s exposure to the wholesale price)8.
In regulation 49, after paragraph (1)(d) insert—
(e)
on and after the discount duties end date for a supplier, sub-paragraph (d) is to be read in relation to that supplier as though the words “in relation to a variable price contract” were omitted;
(f)
sub-paragraph (e) does not apply to a supplier in relation to energy—
(i)
in respect of which the supplier has billed the customer before the discount duties end date,
(ii)
supplied in a billing period in respect of which the supplier has not billed the customer before the discount duties end date, or
(iii)
in respect of which unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties end date;
(g)
in sub-paragraphs (e) and (f), “discount duties end date” has the same meaning as in regulation 30(3A).
Amendment to regulation 68 (referrals in respect of disagreement between contract parties)9.
In regulation 68—
(a)
at the beginning of paragraph (3) insert “Subject to the exception in paragraph (3A),”;
(b)
after paragraph (3) insert—
(3A)
Where the disagreement is not resolved and the matter concerns a determination made by the supplier under or by virtue of regulations 30(3A) and (3B) or 49(1)(e) and (f)—
(a)
paragraph (3) does not apply, and
(b)
the supplier's determination remains effective.
Similar to Part 2, this part amends the Energy Bills Discount Scheme Regulations 2023.
Regulations 7, 8, and 9 mirror the amendments made in Part 2 but apply the same changes to the Energy Bills Discount Scheme, ensuring consistent treatment across both schemes.
The changes mirror those in Part 2, focusing on discount end dates, exceptions for billing delays and contract adjustments, and changes to dispute referral processes.
Part 4Amendment of the Energy Prices Act 2022
Amendment to Schedule 5 to the Energy Prices Act 202210.
In paragraph 7(1) of Schedule 5 to the Energy Prices Act 2022, for the words from “the first” to the end substitute—
(a)
for the purposes of paragraph 5, the first period of 26 months to end after this Act is passed during the whole of which both the First Minister and deputy First Minister in Northern Ireland have held office, and
(b)
for the purposes of paragraph 6, the first period of 6 months to end after this Act is passed during the whole of which both of those Ministers have held office.
This part amends Schedule 5 of the Energy Prices Act 2022.
Specifically, it alters the timeframe within which certain powers can be exercised by the Department for the Economy in Northern Ireland, extending it from 6 months to 26 months, impacting the duration of their ability to make amendments to related energy regulations in Northern Ireland.