Defra Energy Bill Discount Scheme
A new energy scheme for businesses, charities, and the public sector has been confirmed (9th January), ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.
From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefiting from lower energy prices.
A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. A long standing category associated with higher energy usage; these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity.
Energy Bill Discount Scheme summary
For eligible non-domestic customers who have a contract with a licensed energy supplier, the government is announcing the following support:
- From 1 April 2023 to 31 March 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.
- This will be subject to a wholesale price threshold, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.
- Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.
For eligible Energy and Trade Intensive Industries, the government is announcing:
- These businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price.
- The price threshold for the scheme will be £99/MWh for gas and £185/MWh for electricity.
- This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.
The government has been criticised by the NFU and other grower bodies for not including primary food production in the Energy Bills Discount Scheme
ASA Ruling - Promotions
DT Fitness t/a dtfitness_31 upheld social media (own site) 11 Jan DT Fitness - ASA | CAP
A promotion in a post on a personal trainer’s Instagram page was not administered fairly.
DT Fitness believed a fake Instagram account had been created, copying their own account. However, DT Fitness had not provided any evidence which demonstrated that the complainant’s Instagram account had any links to the apparent fake account.
The ASA also saw no evidence which accounted for how the creation of such a fake Instagram account could influence or impact on the selection of a winner of the promotion by DT Fitness. The ASA consequently considered that DT Fitness had not demonstrated that there was a justifiable reason for withholding one of the prizes from the complainant.
Easy Consulting SL t/a Sky Breaks Upheld internet 11 Jan DT Fitness - ASA | CAP A prize promotion on a travel agency’s website misleadingly omitted significant conditions. The complainant, was told over the phone he had won a runners-up prize but that he must pay a fee to claim his prize
The CAP Code stated that all marketing communications or other material referring to promotions must communicate all applicable significant conditions or information where the omission of such conditions or information was likely to mislead. Significant conditions included the number and nature of prizes and, if the exact number could not be predetermined, a reasonable estimate of the number and a statement of their nature must be made.
The ASA noted that the ad did not include any information about the runners-up prizes. They considered that was material information which was likely to influence consumers’ decisions and understanding about the promotion, and the omission of that information was likely to mislead.
NI Protocol
The Northern Ireland protocol keeps Northern Ireland subject to EU sanitary and regulatory standards on goods after the rest of the U.K. left the bloc. It means goods flow freely across the Irish land border in both directions, but has required tougher controls on goods imported from Britain to ensure the single market.
British unionists in Northern Ireland have in protest been refusing to rejoin the region's power-sharing government in protest since Feb 2021. Equally, the UK Gov has also stated the protocol is not working and had planned to override most of the agreement if the EU did not agree to changes. Last summer the European Commission was referencing suing the UK if the government pursued plans to unilaterally start scrapping parts of the protocol.
This month, January 2023, it was agreed the EU would access UK IT systems detailing goods moving from Great Britain to Northern Ireland, a key step to reaching a broader deal.
One of the changes the UK has proposed is a green lane/red lane system for goods entering Northern Ireland from GB. The EU accepts that goods which are staying in Northern Ireland should be subject to a lighter touch. Alternatively, an ‘express lane’ for GB goods to NI.
Both these proposals would require accurate, real time information on GB to Northern Ireland goods for risk management and enforcement purposes. The sharing of IT systems is therefore a positive step towards reaching an agreement. The EU's acceptance the system works will be significant for this.
Plastics & Net Zero
A review Mission Zero into the UK’s net zero plans has recommended ending plastic exports by 2027 and urgently delivering waste sector reforms. The review, chaired by the MP for Kingswood and former energy minister Chris Skidmore, makes 129 recommendations. MISSION ZERO - Independent Review of Net Zero (publishing.service.gov.uk) Published 13 January.
Among recommendations to ‘deliver a circular economy’, the Mission Zero report said the Government should deliver urgently on its commitments to collection and packaging reforms, including extended producer responsibility (EPR), standardised collections, and deposit return schemes (DRS).
In relation to food production the review highlights improving the sustainability of farming practices and helping to sequester carbon by improving the soil management and biodiversity of farmland. It states 'in some countries, including the UK, we are seeing a decline in demand for some of the foods that need the most carbon to produce – such as red meat – and there is potential for lab-grown alternatives... Individual choices, like what kinds of food we buy, have an impact on decisions made on how the UK uses land. This includes a recommendation to pursue ‘ecolabelling’ on food products.'
The proposal for an ecolabel has been highlighted in the past as a potential food labelling development. It is likely if this were to be developed that it would first come about as a voluntary code and will require a specific guidance on carbon evaluation.
Single Use Plastics
Defra is to publish its consultation results on the proposal to ban plastic plates, trays, bowls, cutlery, balloon sticks and certain types of polystyrene cups and food containers on 14 January. Defra launched a consultation on extending the legislation in November 2021.
Environment secretary, Therese Coffey, gave advance details on the proposed legislation to the Mail on Sunday. AT LAST: Ministers are set to ban the throwaway plastic killing our wildlife by the end of the year | Daily Mail Online
The legislation is stated to be due to come into effect in October 2023. The proposal will state:
- The ban will not cover plastic plates, bowls and trays that are used as packaging for takeaway food and drink in supermarkets and shops –
- The ban will cover packaging for food and drink that is eaten at a restaurant, cafe or takeaway.
This is because takeaway packaging is covered by extended producer responsibility legislation, due to be enacted in 2024 which will make manufacturers contribute to the cost of disposing of their plastic packaging.
England banned single-use items such as plastic straws, stirrers and cotton buds in October 2020. Legislation will need to be introduced to bring the ban into effect meaning although October is referenced it is thought more likely to be introduced by the end of this year or in 2024.
The Foodservice Packaging Association (FPA) has stated: "It is simply not acceptable for business to learn of critical developments second hand." The FPA called for a code of conduct for government departments issuing information