OVER 10 million customers at one energy firm are set to get the cash discount directly into their bank account.
Over 29 million households are eligible for the energy bill support scheme, set up to give people a discount worth £400.
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However, the way you’ll be paid will vary depending on who your energy supplier is, as well as the way in which you’re billed.
Those on credit meters and smart prepayment meters will be paid the £400 discount automatically over a six month period.
But it’s up to your energy firm to decide whether they give out the discount in cash form or as a bill credit.
The discount was originally announced back in May by the former Chancellor Rishi Sunak, but the money won’t start to arrive until October.
British Gas, E.ON, E.ON Next, EDF Energy, Shell Energy, Utilita and Utility Warehouse have all now confirmed how they’ll pay their combined 21 million customers.
British Gas
- Customers: 10 million
The country’s biggest energy supplier, British Gas, has now revealed how exactly its customers will get the £400 bill discount.
Those who pay by direct debit, the vast majority of British Gas’ customers, will be expected to pay their bills as normal each month.
They will receive the £400 discount as direct payments into their bank account, spread over a six month period.
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In an email to customers British Gas said: “For direct debit customers, we’ll send the discount straight to your bank each month – like a refund – once your Direct Debit has gone through.
“For example, if your direct debit is £100 a month, you’d pay as normal. Then a few days later, £67 will be paid in to your bank account.
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.”
E.ON and E.ON Next
- Customers: 3.8 million
E.ON has today confirmed how its 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.
This will ensure customers pay £66/67 less than they otherwise would have been expected to pay. Any excess credit will be carried over to the following month.
Those on smart prepayment meters will also receive the payment as a credit billed to their account.
EDF
- Customers: 5.2 million
Like British Gas, EDF has also confirmed that customers who pay by monthly direct debit will pay their bill as normal and 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.
Shell Energy
- Customers: 1 million
Shell Energy customers will see the six discounts deducted from their bills before their direct debit is taken.
For example, if your monthly direct debit amount is £100, Shell Energy will deduct £66 in October and November, then £67 in each month from December to March.
This means your direct debit amount would be £34 in October and November, then £33 for the remaining four months.
Of course the exact amount that you pay after the discount will depend on how much your direct debit is each month.
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.
Utilita
- Customers: 800,000
The £400 energy bill discount payments will be automatically added as a credit to your account – so they’ll be used to reduce your bill.
You’ll see these on your bills as ‘Energy Bill Support Scheme’.
Those on smart prepayment meters will be credited automatically.
Utility Warehouse
- Customers: 650,000
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.
For example, Utility Warehouse said: “If your direct debit payment was £166 in October, we would only request £100 from your bank account, with the £66 being provided by the Government discount.
Customers on smart prepayment meters will receive the discount remotely through a credit on their device.
We’ve contacted Bulb, Octopus Energy, Ovo and Scottish Power to ask how they’ll ensure their customers will get the $400 energy bill discount.
I have a standard electricity meter, how will I get the payment?
Direct debit customers will receive the energy bill discount in one of two ways.
You will either get an automatic deduction to your monthly direct debit, or you’ll get a refund into your bank account AFTER your direct debit has been taken each month – this is what British Gas and EDF are doing.
If you pay by credit (which means you get a bill through and then make a payment) the discount will be automatically applied as a credit on your account in the first week of each month.
I’m on a prepayment meter, how will I get the discount?
If you’re on a smart prepayment meter, the discount will be credited directly to your meter in the first week of each month of delivery – you won’t need to do anything.
If you’re on a traditional prepayment meter, you’ll be given a redeemable energy bill discount voucher or special action message (SAMs) in the first week of each month, issued via SMS text, email or post.
Customers will then need to redeem these at their usual top-up point.
I don’t have a direct relationship with an energy provider?
The government has confirmed today that further funding will be available to provide equivalent support of £400 for energy bills for the 1% of households who will not be reached through the energy bill support scheme.
This includes those who do not have a domestic electricity meter or a direct relationship with an energy supplier, such as park home residents.
An announcement with details on how and when these households across Great Britain can access this support will be made this Autumn.
Is there other energy bill help?
While you can’t do anything to escape rising energy prices – energy suppliers do offer support for those who are struggling to pay their bills.
For example, there are plenty of energy grants and schemes open to help you out if you’re struggling, like the British Gas hardship fund which can lend you up to £1,500 free cash towards bills.
Ask your supplier what’s on offer and how to apply, or check here:
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
If you don’t know who your supplier is, you can find out here.
Anyone getting the state pension should also get winter fuel payments worth £100s. Winter fuel payments are a tax-free payment that comes from the government each year and is worth between £100 and £300.
Councils are offering residents cash support through the Household Support Fund and Discretionary Fund scheme.
