All UK households will get more than £400 off their energy bills this winter, as the Government revealed the details of its cost-of-living support.
It comes as the price cap seems to be ever increasing, with it going as high as £3,000 as from October. As a result a discount of £66 will be applied to energy bills in October and November, rising to £67 each month from December through to March 2023.
The Energy Bills Support Scheme provides a £400 non-repayable discount to eligible households to help with their energy bills. All households with a domestic electricity connection in England, Scotland and Wales are eligible for the discount.
READ MORE: British Gas shares how all customers will receive £400 cost of living payment
You do not need to apply for the discount, and there’s no need to contact your energy supplier. Here is everything you need to know about the energy credit, including when it will be paid and how.
Who is eligible for the £400 energy credit?
Only 1% of households are not eligible for the discount. All households with a domestic electricity connection in England, Scotland and Wales will receive the credit.
For households without a domestic electricity meter and a direct relationship with an electricity supplier - for example if you live in a park home, houseboat or you live off the grid - the government has confirmed that further funding will be available to provide equivalent support of £400 for energy bills.
How do I get the the £400 energy credit?
You do not need to apply for the discount, and there’s no need to contact your energy supplier. The discount will be applied to your monthly household electricity bill for 6 months starting in October 2022.
Your electricity provider should be in touch before the scheme starts to make you aware of how you will be receiving it. British Gas has already contacted customers - read more about that here.
You’ll get the discount monthly, even if you pay for your energy quarterly or use a payment card. The discount will be applied as follows:
- October - £66
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
If you have not received your first instalment by the end of October 2022, you need to contact your supplier.
Direct Debit customers
You’ll get the discount automatically in one of the following ways, as:
- a reduction to your monthly direct debit amount
- a refund to your bank account following the monthly direct debit collection
Traditional Pre-Payment customers
Traditional prepayment meter users will get equivalent vouchers that you will need to redeem. If you have a traditional prepayment meter you’ll get the discount from the first week of each month.
You’ll get the discount automatically in one of the following ways, as:
- redeemable vouchers, sent by SMS text, email or post
- an automatic credit when you top up at your usual top up point
Your electricity supplier will let you know in advance how you will get your discount. Your supplier should have your contact details, but if you’re not sure or you don’t receive any information from them, you should check that they have your latest number and email.
If you get vouchers you’ll need to redeem them at a top-up point. Your supplier will tell you where to redeem them, for example at a Post Office branch or a PayPoint shop. Payzone outlets are unable to accept the vouchers.
Smart Pre-Payment customers
Your discount will be credited directly to your smart prepayment meter in the first week of each month.
Standard credit or payment card customers
Your discount will be automatically applied as a credit to your account in the first week of each month. The credit will appear as it would if you had made a payment.
If you pay for electricity as part of your rent
If your landlord has a domestic electricity contract with a licensed electricity supplier, and you pay for your electricity as part of your rent, your landlord may pass their discount on to you. Your landlord may be reselling the electricity to you based on your usage, in which case:
- they must comply with the maximum resale price rules which say they must not make a profit
- the maximum resale price for electricity is currently set at the same price as that paid by the person reselling it (see Ofgem’s guidance on ensuring customers are being charged no more than they should)
Your landlord may charge an ‘all inclusive’ rent, where a fixed cost for energy usage is included in your rental charges, in which case:
- they are encouraged to come to an agreement with you on the discount in line with the arrangement in your tenancy agreement
- the landlord’s fixed charge may already provide you with similar protection from the impact of the energy price increase
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