Purpose

Heat networks usually purchase energy (gas or
electricity) to produce heat through commercial contracts. This
heat is then supplied to customers on heat networks.
Non-domestic customers on heat networks will receive at least the
baseline level of support under the EBDS. A higher level of support
is available to heat networks with domestic end consumers through
an application process.
Our tenants received support from the Energy Bill Relief Scheme
(EBRS) (for energy use between 1 October 2022 – 31 March
2023) and will now receive the enhanced support from the Energy
Bills Discount Scheme (EBDS) (for energy use between 1 April 2023
– 31 March 2024).
The EBDS aims to ensure that domestic customers on heat networks do
not face disproportionately higher heat and hot water bills when
compared to customers in equivalent households who are supported by
the Energy Price Guarantee.
The government brought into force the Energy Bills Discount Scheme
Regulations 2023 and the Energy Bills Discount Scheme Pass-through
Requirement (Heat Suppliers) Regulations 2023 on 26 April 2023.
These Regulations introduced the following requirements on eligible
heat suppliers that have heat networks with at least one domestic
end user:
1. to apply for a specific higher heat network EBDS discount rate
through the EBDS Application Portal
2. if they receive a discount under EBDS, to pass on the benefit of
the higher heat network EBDS discount rate to end consumers
3. to provide consumers with information on how the
‘pass-through’ will be affected
4. To register for the redress scheme, administered by the Energy
Ombudsman, which will allow domestic and microbusiness consumers on
heat networks to raise a complaint if they have not received the
benefit of the EBDS.
The Council has completed actions 1 and 2 from the above list (and
has been successful at receiving the discount). Point 3,
notification to consumers will happen once this ODR has been
approved and point 4, registration with the Ombudsman is in
progress.
The existing charges of 33.0p per unit for Balby Bridge and 15.0p
per unit for Ennerdale (both took effect on the 12 December 2022)
were set assuming the Council would purchase Gas from Corona at
10.9357p per unit.
The successful application for the enhanced EBDS discount is
expected to see the price that the Council buys Gas from Corona
drop to 7.83p per unit from April 2023. This is a 28%
reduction
from the 10.9357p per unit price from which the existing charges
were set.
If the charges tenants pay for heat and hot water on the network
schemes were to fall by the same percentage the Council’s
charges are expected to fall by when purchasing gas the revised
charges (excluding vat) will be;
Balby Bridge – 24.0p per unit
Ennerdale – 13.0p per unit
Milton Court weekly charge to
• £10.08 per week for a bedsit
• £10.51 per week for a one-bedroom property and
• £10.80 per week for a three-bedroom property.

Content

The Council operates two heat networks, one at
Balby Bridge in the Town Centre and one at Ennerdale in Wheatley
Hills where it provides heat and hot water to 1,033 properties in
total.
This decision is to approve a reduction in the gas element of
district heating charges at these two sites by 28% to reflect the
discount the Council has received from the Energy Bills Discount
Scheme (EBDS).
It is proposed the new charges (excluding VAT @ 5%) will be:
• Balby Bridge Estate 24.0p per unit
• Ennerdale 13.0p per unit
• Milton Court weekly charge
• £10.08 per week for a bedsit
• £10.51 per week for a one-bedroom property and
• £10.80 per week for a three-bedroom property
All charges will be backdated to 1st April, 2023.
The decision applies to this year only and the charges will be
reviewed again as part of the budget setting for 2024/25.