ENERGY giant Octopus has announced a huge £40million support package to help customers as the price cap nears.
Octopus duel fuel customers on its standard variable tariff will get an automatic 4% discount on standing charges from October 1.
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Standing charges are the basic daily cost you need to pay no matter how much energy you use.
It’s a mandatory bill which supplies your property with gas and electricity – and Ofgem sets the charges.
Right now, the current rates for duel fuel tariffs are:
- A standing charge of 28p per day for gas
- A standing charge of 46p per day for electricity
But Octopus are stepping in to battle those rising costs by offering reductions to all customers on the Flexible Octopus tariff.
Under the new promise, duel fuel customers will be paying 44.71p per day for electricity and 26.84p per day for gas from 1 October instead – which saves them roughly £12 per year.
Greg Jackson, CEO and founder of Octopus Energy said: “High standing charges are egregious. This £40m package is the beginning of our battle to bring them down.
“Far too many costs have been loaded onto standing charges – from grid and distribution charges to failed suppliers.
“These charges just make it more difficult for hard-pressed customers to save money through efficiency and Octopus is making a stand to change that.”
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PM Liz Truss’ new energy price freeze will cap energy bills at £2,500 for two years – but that’s just how much your supplier can charge.
If you use more energy, your bill might still be higher than that.
But to lend more of a helping hand, Octopus will also be offering “standing charge holidays” of up to six months for those who are particularly struggling.
Around 100,000 households who are on low income will be eligible for it, and details on how to apply are still to be released.
It’s presumed you will have to be under evident financial struggle to be accepted – so it might help if you’re on one or a few benefits. How many months you get without needing to pay a standing charge will depend on your circumstances.
Otherwise, the 4% reduction will be applied to all those on the standard variable tariff automatically upon the new price cap.
If you’re not sure which tariff you’re on, we recommend calling Octopus or checking which tariffs there are here.
What other bill help is there?
Lots of other energy suppliers have supportive funds which you might want to browse through if you’re struggling and not with Octopus Energy.
Bulb
Depending on your circumstances, Bulb may be able to offer you a £140 grant to help with your energy costs.
The firm may also offer to write off your energy debts up to £2,000 as well as provide you with an energy-efficient appliance.
To be available for this scheme you’ll need to meet some of the following criteria:
- You’re in financial difficulty
- You or someone you live with has a disability or long term health problem
- You pay for your energy by topping up your meter
- You have over £150 of energy debt, but are able to pay for your ongoing energy usage
- You have one or more essential appliance that’s either faulty or over 12 years old
It’s expected that Bulb will open applications for the 2022/23 scheme soon – so keep checking its website.
E.ON Grants
Customers of both E.ON and E.ON next can apply for cash grants to help with their energy costs.
E.ON doesn’t have an established eligibility criteria but the Fund aims to help as many people as possible and applications from individuals with the greatest needs will be prioritised.
In order to complete your application you will need to know your energy account number and provide a recent meter reading.
Depending on your circumstances you’ll be asked to provide the following items of evidence:
- Proof of all household income for yourself and anyone living with you for the current tax year.
- All pages from the Department for Work and Pensions (DWP) stating your entitlement to a benefit and the amounts due to be paid for the current tax year
- Pension letters for State or private pensions.
- Medical confirmation from the organisation that referred to you the fund or a medical DS1500 form or medical confirmation from a consultant or your doctor.
- Evidence of a budget sheet that was issued to you when you received professional money advice from the FCA approved agency. The budget sheet must be dated within the last 4 weeks and be on company headed paper.
EDF Customer Support Fund
To get a cash grant from EDF you’ll first have to register for its priority services.
Once you’ve done this and the firm has assessed your circumstances you’ll be able to apply for an energy grant.
You’ll need to have your EDF account number and current energy debt balances ready, along with details of your household finances and vulnerability.
OVO Energy
OVO Energy will soon partner with Charis to offer support to domestic customers who are experiencing hardship through the Charis Let’s Talk Energy Fund.
Details about the scheme remain under wrap for now. However, you can register your interest and get a notification when applications are expected to open this month.
Scottish Power Hardship Fund
Customers could get up to £750 in grants from Scottish Power to help with their energy bills.
You could qualify for help from the Scottish Power Hardship Fund if you’re receiving
- Income Support,
- Job Seekers Allowance,
- Pension Credit, or
- Employment and Support Allowance
If you think you’re eligible for the cash grant you can apply online and should get a response within five working days.
Read here to learn about the British Gas hardship fund – you’ll need to be a customer, but you could get up to £1,500.
