Energy Bill Relief Scheme – treatment of gas fuelled CHP

The Energy Bill Relief Scheme (EBRS) provides support to businesses impacted by the steep rise in energy costs. The initial announcement said that electricity generators who export electricity to the grid would not be eligible for relief on the gas they use. As you might expect from us, our immediate thought / question was ‘what about natural gas fuelled CHP?’ Well we now have the answer:

The full guidance is here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1114998/ebrs-gb-ni-guidance.pdf

Section 7.2 covers CHP. The key points are:

CHP with a maximum electrical output equal to or under 5MW will receive the full EBRS discount on all gas used. Regardless of the amount of heat used and/or electricity exported to the grid.

CHP with a maximum electrical output over 5MW will receive the EBRS discount on gas that ‘stays on site’ in the form of heat and/or electricity. By means of an indication:

Where all electricty is used on site all the gas used is eligible for EBRS discount regardless of the amount of heat used.

Where most of the heat is used on site but most of the electricity is exported to the grid roughly 50% of the gas used is eligible for the EBRS discount.

The actual % of your CHP gas eligible for EBRS discount depends on the % of electricity generated an exported to the grid and the amount of heat used. The guidance provides good detail on how to do this.

The guidance specifically states that a CHP does not have to be certified under the CHP Quality Assurance Programme (CHPQA). Although if you have a CHP and it is not in CHPQA you really do need to talk to us!