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how will the energy bill discount work?
how will the energy bill discount work?

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How Will the Energy Bill Discount Work?

Most homeowners in England, Scotland, and Wales will receive a £400 discount on their energy bills from October 2022 to March 2023. Read below to find out more!
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Most homeowners in England, Scotland, and Wales will receive a £400 discount on their energy bills from October 2022 to March 2023.

It will be provided in six monthly instalments and is known as the Energy Bills Support Scheme.

The Northern Ireland Energy Bills Support Scheme will provide homes in Northern Ireland with a £400 reduction, according to the UK government.

How to get the energy bill discount

All households in England, Scotland, and Wales are eligible if they have a domestic electricity connection.

There is no need to apply for the discount as it will be applied to your household electricity bill automatically for six months, starting in October 2022.

Payments will be as follows:

  • £66 in October and November

  • £67 monthly from December to March

Prepayment meters will get energy bill discount vouchers that can be redeemed.

Direct debit customers

As a direct debit customer, you'll get the discount automatically either as a debit amount on your monthly bill or as a refund into your bank account.

Credit or payment card customers

Your discount credit will automatically be applied to your account as a credit in the first week of the month.

Smart prepayment meter customers

If you have a smart prepayment meter the discount will be added as a credit to your meter directly in the first week of the month.

Traditional prepayment meter customers

You will also receive the discount in the first week of the month and it will be in one of these ways:

  • A voucher you can redeem, sent by email, SMS, or post

  • An automatic credit when you purchase a top up

You can find out from your electricity supplier how you'll receive your credit.

Paying electricity with your rent

Your landlord may pass the discount on to you if you pay for your electricity as part of your rent.

Your landlord may charge you an 'all inclusive' rent where the electricity is included, in which case:

  • The landlord has to put an arrangement in place with you that is in line with your rental agreement

  • The landlord's fixed charge may already give you some relief from the impact of rising energy bills.

Security measures

Additionally, measures are being implemented to safeguard customers against the danger of fraud, gaming, and non-compliance.

Customers will be informed in writing that they have received the £400 Energy Bill discount from HM Government, and suppliers will be required to make sure that this is clearly stated on bills or statements for Direct Debit and Credit customers.

These actions include notifying customers in writing that this support has been passed on to them.

Other help with bills

If you owe your energy supplier you may be able to get a grant to pay it off. You can also apply for other types of support, which can include:

  • A £650 Cost of Living payment

  • A £300 Pensioner Cost of Living Payment

  • A £150 Disability Cost of Living payment

  • Help from your local council's Household Support Fund

The government announced an online service that aims to assist homeowners to make smart choices when it comes to energy efficiency measures and reducing their consumption and costs.

This forms part of 'Help to Heat', the government's initiative to make homes warmer but cheaper to heat. There has been a £12 million investment for this initiative and it has already delivered average energy bill savings of around £300 a year.


Can I get the discount if I live off the grid or in a park home?

According to government estimates, about 1% of UK households don't qualify for the £400 discount because they lack a domestic electricity meter or a direct connection to an electrical supplier.

Additional funds will be made available to offer these households an equivalent level of support. Later this year, specifics regarding when and how people can get support will be disclosed.

What happens if the supplier goes out of business, or if I change my payment method?

Every month, regardless of the supplier, payment method, or tariff, households will receive the credit. You won't be penalised if you change your payment method during the time frame or if your energy provider fails.

What happens if I switch energy suppliers?

Starting in October, the £400 discount will be applied to invoices from all energy providers. It doesn't matter whether you switch suppliers.

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