MILLIONS of households are set to receive an energy bill discount worth hundreds this winter.
And it’s up to your energy supplier to decide how you’ll be paid the £400 discount.
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The way in which you’re billed will also affect how you get the cash back.
So if you have a credit meter and pay for what you use you’ll be paid in a different way to those on smart prepayment and traditional prepayment energy meters.
The £400 energy bills discount will be paid in instalments over six months.
Households will receive the discount between October this year and March 2023.
The support was first announced by the former Chancellor Rishi Sunak back in May.
British Gas and EDF Energy have already confirmed that their combined 15.2million customers will receive the rebate directly into their bank accounts after making their usual monthly direct debit payment.
E.ON and E.ON Next, Shell Energy, Utilita and Utility Warehouse have all now confirmed how they’ll pay their combined six million customers – and it won’t involve a payment into your bank account.
We detail how these four energy suppliers will pay their customers the £400 bills rebate.
We’ve contacted Bulb, Octopus Energy, Ovo and Scottish Power to ask how they’ll discount their customers’ energy bills.
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E.ON and E.ON Next
Those on a fixed energy tariff that pay by direct debit 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 on to their account as a bill credit which’ll be rolled over on to their next bill.
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 and those on traditional prepayment meters will be send vouchers to claim the cash.
Shell Energy
Shell Energy’s 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.
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 and traditional prepayment customers will get cash vouchers.
Utilita
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
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.
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 other means, 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 be able to redeem these at their usual top-up point.
Is there other energy bill help?
Most energy suppliers offer customers cash grants if they’re struggling to pay their 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.
