MILLIONS of households are due to receive a £400 energy bill discount from next month.
Energy suppliers have the freedom to determine how customers are paid.
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Over 29 million households are eligible for the discount worth £400.
The discount will be automatic and will be made up of six instalments, starting from October.
Those on credit meters and smart prepayment meters will be paid the £400 discount automatically over a six month period.
However, it’s up to your energy firm to decide whether they give out the discount as a cash payment or as a bill credit.
British Gas, Bulb, E.ON, E.ON Next, EDF Energy, Scottish Power, Shell Energy, SSE and Ovo, Utilita and Utility Warehouse have all now confirmed how they’ll pay their combined customers.
Here’s all you need to know.
British Gas
- Credited to bank account
The country’s biggest energy supplier with 10million customers, British Gas, has now revealed how the bill rebate will be applied.
Those who pay by direct debit – which is the vast majority of British Gas’ customers – will be expected to pay their bills as normal each month.
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They will then receive the £400 discount as direct payments into their bank account, spread over a six month period.
Those with bills of less than the monthly refund will get the money refunded and the remaining amount added to their account.
The firm said: “If your direct debit is less than £67 a month, say £50 for example, £50 will be refunded to your bank account and the remaining £17 will be applied to your energy account.”
Bulb
- Direct debit reduction
Bulb customers will receive the discount automatically and their direct debits will be adjusted accordingly.
Those on smart prepayment meters will have the amount credited to their electricity account.
E.ON and E.ON Next
- Direct debit reduction
E.ON has today confirmed how its 3.8million customers will get their hands on the £400 energy bill discount.
Those who pay by direct debit that are on a fixed energy tariff will see the rebate amount deducted from their monthly payment amounts.
If a customer’s payments are less than £66/67, the firm will reduce payments to £0 and add the extra as an account credit.
Customers on the standard variable tariff that pay by direct debit will see the rebate added as a credit on to their account each month.
Any excess credit will be carried over to the following month.
Those on smart prepayment meters will also receive the payment as a split credit to their gas and electricity meters.
EDF
- Credited to bank account
Like British Gas, EDF has also confirmed that its 5.2million customers who pay by monthly direct debit will pay their bill as normal.
They will then receive the discount in cash directly into their bank account after a successful bill payment is made.
Non-direct debit payers will see the energy rebate automatically credited to their energy account in the first week of each month.
Those on smart prepayment meters will receive the discount automatically through a credit on their device.
Scottish Power
- Credited to bank account
Scottish Power customers will be expected to pay their bills as normal and then receive the cash discount back as a payment into their bank account.
Shell Energy
- Direct debit reduction
Shell Energy‘s 1million customers will see the six discounts deducted from their bills before their direct debit is taken.
Non-direct debit payers will see the discount appear on their bill as an extra payment, so they’ll also owe less than they normally would.
Smart prepayment meter customers will receive the monthly payment direct to their meters as a credit.
SSE and Ovo Energy
- Credited to bank account
Both SSE and Ovo Energy customers will see the £400 discount instalments credited to their bank account after a successful direct debit payment has gone through.
Those on smart prepayment meters will see the discount instalments credited to their electricity meter.
Utilita
- Direct debit reduction
The six payments worth £66-67 will be automatically added as a credit to your account. That means the cash will reduce your overall bill.
Those on smart prepayment meters will be credited automatically.
Those on traditional prepayment meters will get the discount in voucher form.
Utility Warehouse
- Direct debit reduction
Like Shell Energy, Utility Warehouse customers on fixed energy tariffs and the standard variable tariff will see the discount come off their bill.
Customer direct debits will be adjusted before each monthly bill to reflect that the customer has received the discount.
Customers on smart prepayment meters will receive the discount remotely through a credit on their device.
We’ve contacted Octopus Energy, Ovo and Scottish Power to ask how they’ll ensure their customers will get the £400 energy bill discount.
