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Kerosene and Therma35 heating oil users benefit from financial support scheme and rebated fuel entitlement

24th March 2023. 

Following the Spring Budget 2023, a number of measures have been introduced by the government to support kerosene and Therma35 heating oil users.

Companies can now get support with their heating bills and have until Friday 28th April 2023 to apply for top-up payments. Furthermore, it has been announced that rebated kerosene and Therma35 can be used for heating purposes on business premises.

Here, we take a closer look at the changes and what it means for our customers.

Financial support scheme launched for heating oil users

The government has announced the launch of a Non-Domestic Alternative Fuel Payment Portal, designed to support off-grid businesses with their heating costs.

Companies who use more than 10,000 litres of heating oil on their premises are eligible for extra payments. The payments will be tiered according to usage up to £5,800, with bespoke arrangements available for high volume users consuming over 150,000 litres per year.

It’s worth noting that whilst fuel used for space heating and industrial processes is covered by the scheme, businesses that use the fuel for generating electricity which is then returned to the grid, for transportation or to sell to end-users in another location are not eligible. It’s also worth a reminder that gas oil is not covered under this scheme.

Businesses with non-domestic properties connected to the electricity grid will receive £150 automatically through their energy supplier. Off-grid businesses who don’t automatically receive support can apply for a fixed alternative fuel payment of £150 through the portal.

To apply for the ‘top-up’ payment, companies need to provide:

  • proof of address
  • company registration details
  • proof of purchase (receipts over a 12-month period starting 1st September 2021 for the top up or for the £150 fixed payment, one invoice that proves your purchase of alternative fuels for use at the property dated between September 2022 to January 2023)
  • bank account details

Businesses are urged to apply now, as the portal closes on Friday 28th April.

To make an application and to learn more about the scheme, click here. Companies that cannot apply online can call the helpline on 0808 1753944 (open 8am to 6pm, Monday to Friday, except public holidays).

Update to rebated heating oil entitlement

The government also announced an update to the legislation for use of rebated fuel for commercial heating. 

In April 2022, new duty equalisation measures were introduced, and many businesses lost their entitlement to use rebated diesel and biofuels. However, slight changes have been made to this initial legislation and new guidance has been issued relating to ‘generating heat’ for premises. 

This means that using a system to provide warmth to a room or building, or using a boiler or other appliance to heat water or other substances for use or consumption in or on the premises is entitled to use fully rebated kerosene on any premises and that this change also applies to Therma35 commercial heating oil.

More information about the law change can be found here.

Still got questions? Reach out to one of our experts today for further guidance and advice.

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