British renewable energy company, Octopus Energy, has issued an important update to its customers on the £400 cost of living payment.
The company has been working hard to support its customers throughout the current cost of living crisis, as Ofgem plan to raise the price cap once again in October 2022. The current price cap, which limits the rate at which supplies can charge their customers, is sitting at a whopping £1,971 before the increase.
The UK Government is currently in the process of rolling out the cost of living support to energy companies across the country, with £400 owed to every household. The energy rebate will be paid in six monthly instalments from October 2022, the same month that the price cap will increase.
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The price cap has been predicted to jump from £1,971 to £3,553 a year, a whopping increase of 80 per cent and £1,582 extra in total. This is the largest jump in price cap we have seen yet, since it was introduced in January 2019.
Ofgem believes that from January next year (when the rate will next change after October) households will be paying an average of £4,101.74, and that this will increase to £5,054.53 from July 2023. The cost of living payment of £400 has been introduced to help combat the ever-growing energy bills, and will be added to balances from October onwards.
Octopus Energy posted an important on their website, saying: "We're continuing to discuss how this payment will work with Government, and as soon as we know the exact details we'll let all of our customers know. The £400 will be spread into several monthly payments across winter.
"It'll be paid by your energy supplier into your energy account balance. If you are a prepayment customer, you will be given vouchers. Prepayment customers are people who pay for energy before they use it.
"Payments should start in October 2022. Different people will probably be paid at different times over winter."
The first payment of £66 is expected to be in October, followed by a similar amount in November, then four payments of £67 in December, January, February and March.
For more information on what support Octopus Energy are giving its customers throughout the energy crisis, visit their website here.
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