MARTIN Lewis’ MoneySavingExpert has warned prepayment energy customers about an energy payment loophole.
The loophole concerns those on smart meters who will be receiving the first £66 as part of the £400 cost of living payment.
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There are two types of prepayment meters. Traditional or “legacy” prepayment meters need to be topped up using a card or key fob which you can add cash to at local PayPoint kiosks.
Smart prepayment meters can be topped-up at home via an app or online.
Each energy supplier has the freedom to decide how it will apply the discount on to your energy meter.
MSE is urging smart prepayment meter suppliers to offer customers the option to split each cost of living payment between gas and electric bills.
Although you already have the option to do this if you’re on a traditional prepayment meter, it’s up to your supplier how they pay it for those with smart meters.
So far Bulb, E.on, Shell, Octopus and EDF have all agreed to either split the payment between gas and electric bills, or allow you to transfer all of it to your gas bill.
Right now, the payment only counts towards your electric bill.
MSE is calling for change because your gas covers heating – which could now cost more as prices soar and winter starts.
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While you’ll still get the discount on your bill, many may find that the help is more useful applied to gas bills.
MSE said it is writing to firms and the energy regulator Ofgem to urge them to let all customers shift the payment on to their gas meters.
The £400 energy bill rebate will be paid in instalments over six months.
Households will see a discount of £66 applied to their bills in October and November, and £67 in December, January, February and March.
Energy suppliers are also applying the discount in different ways.
British Gas, EDF Energy, Ovo Energy and Scottish Power have confirmed they will pay the cash into customers’ bank accounts for those paying their bills by direct debit.
Other firms will add the credit to energy accounts, but for prepayment customers, it will depend on the type of meter you have.
How will my smart prepayment meter be credited?
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.
Only E.ON and E.ON Next, Octopus Energy and Shell Energy plan on crediting their customers gas AND electricity smart prepayment meters.
Although Bulb and EDF Energy plan to credit the discount to electricity meters, customers can contact the firm and request that the discount is applied on to their gas meter.
British Gas, Ovo Energy (and SSE), Scottish Power, So Energy and Utility Warehouse will credit the £400 energy bill discount to their customer’s electricity meters.
How will my traditional prepayment meter be credited?
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.
Customers of Bulb, E.ON and E.ON Next, EDF, Octopus, Ovo (and SSE), Scottish Power, Shell Energy, Utilita and Utility Warehouse can choose for their voucher to be redeemed on either their gas or electricity meter.
However, British Gas customers will only be able to redeem their voucher onto their electricity meters.
How else can I reduce energy bills?
Meanwhile there’s more help available for struggling customers and ways to save on bills.
The warm homes discount scheme offers households up to £140.
This scheme is usually paid directly to your energy supplier, which will then apply the discount to your bills. You may be sent a £140 voucher if you have a pre-payment meter.
If you live in a low income household, you can also get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme.
You’ll get a payment if the average temperature in your area falls to zero degrees celsius or below over the space of a week, but you’ll need to be on some kind of means tested benefits to claim.
Draught-proof strip are rolls of tape which you can line your doors with to retain warmth – you can get a roll for as little as £1.75.
Programming your thermostat can help you save cash.
This means you can set “on” and “off” time periods on your thermostat throughout the day to make sure you’re getting heat when you need it and not, for example, when you’re out of the house.
Neglecting to bleed your radiators could force them to work harder, and it means you could end up wasting energy heating nothing.
They might develop cold spots, where air gets trapped inside.
You can use a small valve key – like this one from Screwfix – which normally cost under £2 from any hardware store.
All you need to do twist the radiator key slowly anti-clockwise on the square valve you’ll find on the side.
If you hear a hissing sound, it means the trapped air is escaping – once this stops, close the valve to stop water coming out.
We recently came up with the easiest tricks that could save you £70 on your heating bills – without costing a thing.
We also explored the ‘boiler challenge’ – a simple trick that could end up saving you hundreds on bills.
