Gas prices are dropping to their lowest levels since before the war in Ukraine which may mean households will pay less on their energy bills in the second half of this year but support is still needed now.
According to Investec the energy price cap, which sets a maximum price that energy suppliers can charge consumers for each kilowatt hour of energy they use, could be as low as £2,600 per year from July. Currently the cap, set by regulator Ofgem, is at an annual level of £4,279 until March, 2023.
Despite there being a glimmer of hope for the future of consumer's energy bills, support is still needed for many across the UK. The government has announced new cost of living payments, totalling to £900 for those who receive benefits and are on low incomes.
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But what support is there for people who don't meet those thresholds? A £400 discount for all energy bill-payers looks set to end by April too so what other help is out there?
We asked the big six energy suppliers and others a range of questions to seek out available support in detail for the year ahead. We've spoken to the likes of British Gas, EDF, E.ON, Shell Energy and more for clarity on what you can do if you're struggling to pay your gas and electricity bills.
E.ON
E.ON say they always urge customers who are struggling or have concerns about their account to get in touch so they can look at their individual circumstances and see how they can help - their best contact details are here: contact your electricity and gas supplier | E.ON Next (eonnext.com).
E.ON bill-payers who have credit on their account due to a build up in direct-debit payments can take action or ask E.ON to reduce their payments to reflect their energy costs.
A spokesperson at E.ON said: "Direct debits are designed to give customers the consistency and clarity of paying the same amount each month for their energy consumption. That allows customers to smooth out payments, building credit over the summer months which is then used to cover higher energy consumption during winter.
"Our system tracks and reviews a customer’s direct debit to make sure it is set to cover a full year’s energy costs. We will suggest changing a payment if the amount is not going to cover the cost of the year’s energy usage, or if it is out of line with the overall debt or credit balance."
E.ON say their aim is to have the customer’s account balance at zero after 12 months and added: "We know these are difficult times as the current energy crisis continues to impact bills and we urge anyone that is struggling or feels they are paying too much or too little to get in touch, so that we can look at their individual circumstances and see how we can help."
Their E.ON Next Energy Fund helps eligible customers by providing direct help with paying energy bills to help them become financially stable and providing replacement home appliances. To be considered for this help, customers will need to show that they are committed to being financially stable by making regular payments over a three-month period for ongoing usage before receiving an award.
When asked about a possible increase to the energy price cap after March 2023, an E.ON spokesperson said: "These are incredibly difficult times for customers and for the energy industry as a whole and current forecasts suggest we won’t return to pre-Ukrainian War costs for some time.
"Our recommendation – to customers as well as local and national government – is that we need accelerate support for people to improve the energy efficiency of their homes so they use less power and gas in the first place.
"The only way to insulate Britain from future energy market crises is through a focus on energy efficiency and greater electrification. That means replacing gas and other fossil fuels with home-grown electricity particular by electrifying heating and transport."
EDF
Customers who are struggling to pay their bill and are not 'in credit' on their account are advised to contact EDF as soon as possible. EDF bill-payers can do so via their live chat on their website here or phone 0333 200 5100.
Customers can also WhatsApp an advisor from EDF to save on text costs or email, customer_correspondence@EDFEnergy.com. If there is a gas emergency this number 0800 111 999 should be called immediately.
EDF says they have a "comprehensive range of support in place which can be tailored to individual circumstances." Their support packages include the Customer Support Fund and ways for customers to ' Get More Time to Pay '.
As stated on thier website EDF offer customers more time to pay bills if they are struggling to pay. Their website says: "Get in touch within 14 days of getting your bill, to find out if we can extend your payment deadline.
"We might be able to set up an instalment plan. This allows you to pay off your balance in smaller amounts over an agreed period. We understand that times are hard for customers and at EDF, we’ve recently developed our CARE Steps of Support framework in our conversations with customers and help identify the best outcomes.”
EDF customers can claim back overpaid money from direct debit amounts at the end of their individual direct debit cycle, which is every six months. Anything over £150 can be refunded to customers’ bank accounts, whilst smaller amounts go towards future payments.
A spokesperson at EDF continued: “If a customer wants a refund and has been billed up to date, they are welcome to request one. Direct Debit monthly payments will be recalculated following this as the credit would usually be used to offset seasonal spikes.
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British Gas
The support offered by British Gas has been widely supported and praised, specifically its grant which is extended out to non customers too, and are currently the only provider to do so.
The fuel giant has a scheme which gives people who have energy debt up to £1,500 to help them pay their bills and get back on track, the British Gas Energy Trust Individual and Families Fund offers help to those who are in serious need, for both its customers and non British Gas customers.
Applicants must show a clear interest in wanting to clear their debts with the grant. For many households, it would be a weight lifting relief.
The criteria is quite stringent, and to be accepted you need to be spending more than 10% of your income on energy, have less than £1,000 in savings (as a household), have previous energy debts of at least £250 or more and show that you have previously sought advice from a debt charity or money adviser.
We have reached out for comment and are waiting to hear back from British Gas about further support available on top of the grant.
While there is an increase in the cap for the start of 2023, bill-payers will remain protected under the government’s Energy Price Guarantee (EPG). The Energy Price Guarantee protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used. It currently brings a typical household energy bill for dual-fuel gas and electricity down to around £2,500 per year.
As announced in the 2022 Autumn Statement, the guarantee will be extended from April 2023 until April 2024, and over this period a typical household bill will be reduced to around £3,000.
OVO Energy
The support offered by OVO is also available to SSE and Boost customers as the company now supplies energy to all SSE Energy Services customers.
In support of those who are struggling paying rising energy bills OVO introduced it's £50m Customer Support Care Package, designed to help 'the most vulnerable'.
When asked: 'What they are doing to help households who aren't eligible for any type of benefit but are still struggling to pay energy bills?' in which OVO responded with the above support package, including debt repayment services, free technology and it's partnership with the Trussell Trust food bank.
However it's not too clear what households don't meet the financial criteria (aren't on mean tested benefits for example) can qualify for. On the support package form on their website OVO Energy asks customers to state their total income.
It says: "What’s your annual household income? That's your total income, plus the income of anyone you live with, before tax. Make sure you include any benefits you're entitled to, like income from pensions or Job Seeker's Allowance."
Scottish Power
Scottish Power supplies energy to over 5 million customers across central and southern Scotland, as well as parts of the North East of England. Dedicated to resourcing greener energy solutions, the company takes power from wind farms and power stations and says its the first integrated energy company in the UK to generate 100% green electricity.
Customer reviews praise the provider for being transparent about their pricing, fixed tariffs and easy-to-use app, but is Scottish Power able to deliver a positive customer experience as energy prices continue to soar?
A spokesperson from Scottish Power advised that the company is committed to supporting its customers through difficult times and that they are able to provide financial support both through the Warm Homes Discount and their own dedicated Hardship Fund.
While the Hardship Fund is only eligible to households who fit specific criteria, the energy company says that anyone with a low household income or a reduced income due to illness may also be able to apply.
Scottish Power advises anyone struggling to pay their bills, regardless of their circumstances, to get in touch with them as soon as possible.
A Scottish Power spokesperson said: “We have specially-trained customer service advisors who can help manage customers’ individual situations sensitively and support them to access the advice and support that best meets their needs. That includes working with Citizens’ Advice and our debt advice charity partner, StepChange, as well as offering flexible payment options."
According to their guidance for customers, Scottish Power advises that whilst the typical household bill will remain at around £2,500/year until 31st March 2023, there may be some customers who receive a price change from January 2023.
This is because Ofgem’s quarterly calculation of the price cap takes into account changes in the costs to provide energy to customers in different areas of Great Britain, and on different payment methods.
As the Energy Price Guarantee is a discount that applies to everyone no matter what region you live in or the payment method you use, the update to the price cap level means that some customers on a Standard Variable or default tariff will see an increase or decrease to their prices.
A spokesman for Scottish Power did not say whether the company expects the price cap to increase further after March 2023, but according to their website, customers will be notified of any price change by letter or email.
For customers who have credit on their account and are looking to switch to a smart meter or pay as you go will be refunded with Scottish Power.
A spokesperson said: "Scottish Power will refund customers with credit on their account, but would usually recommend that the balance remains on the account to help pay for extra energy usage during the winter.
"Should customers wish to switch to a Pas As You Go or Smart Meter, both the website and their customer service team will be able to offer advice and assistance on how best to make that happen."
Scottish Power's customer helpline telephone number is 0345 058 0002, and their contact centres are open Monday to Friday 9am until 5pm.
Shell Energy
Shell Energy responded to our questions and gave this response: "We have a £20 million Helpfund set aside to help customers who need financial support, through to the end of 2024.
"We've helped thousands of customers so far, and we are encouraging customers that are struggling with their energy or broadband bills to get in touch with us so we can see how best we can support them.
"In addition, customers eligible for this year's Warm Home Discount payment will receive an additional £150, doubling their payment to £300, which we are funding - we are the only supplier to do this."
Octopus Energy
Octopus Energy customers who are worried about their bill, or are looking for detailed information, be it about account credit or direct debits, are urged to get in touch by calling this number: 0808 164 1088 or email hello@octopus.energy.
In response to our questions a spokesperson at Octopus Energy told us: "We created our support fund ‘Octo Assist’ last autumn for customers who are experiencing financial hardship.
"It has helped over 60,000 customers so far and is still open. To apply, customers need to fill in a quick and simple online tool which asks them a series of questions about their financial situation. We can then offer a number of support options based on circumstances and need, including access to existing schemes or monetary credits from the fund."
Customers can also acces its 'Winter Workout' scheme that gives advice on gas usage, as well as tips to increase boiler efficiency. Schemes including its 'Energy Helpers' and 'Saving Sessions' have been put in place for customers and staff to give money-saving advice and give customers the chance to earn money if they reduce usage during certain times.
For those who are looking to get credit refunds (not using all the energy paid for via direct debit) this is what Octopus says its customers should do.
Explaining the process a spokesperson said: "Due to the direct debit cycle, it is common for some customers to be in a little debt over winter, but this usually balances out in summer. The average energy customer goes in and out of credit throughout the year.
"To explain this cyclical process and how direct debits are set, we developed a unique Octopus tool called the ‘Balance Forecaster’ accessible via a customer’s online account. It shows what their account balance will be if they raise or lower their monthly payments, and it's received overwhelmingly positive feedback from customers.
"Customers paying by monthly direct debit will go in and out of credit and debit through the year - building up more debit in winter (when they use more) and credit in summer (as a buffer for winter)."
Octopus Energy users can withdraw credit at any time through their online account or contacting an advisor on this email: hello@octopus.energy.
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