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ENERGY BILLS SUPPORT SCHEME

Register now to receive a £400 non-replayable discount under the Energy Bills
Support Scheme.

This non-repayable discount will be applied in six instalments between October
2022 and March 2023 to help households through winter.

Start now

From: Department for Business, Energy & Industrial Strategy Published 29 July
2022



WHAT IS THE ENERGY BILLS SUPPORT SCHEME?

 * Over the past year, global energy prices have soared, with wholesale gas
   prices alone quadrupling. This has led to an unprecedented rise in household
   energy bills
 * the Energy Bills Support Scheme will deliver a £400 non-repayable discount to
   eligible households to help with energy bills from October
 * this is an £11.7 billion scheme which forms part of the £37 billion cost of
   living assistance package for consumers over winter 2022 to 2023
 * the scheme will help around 29 million households across Great Britain
 * there is no need to apply for the discount. Energy suppliers will deliver
   this support to GB households with a domestic electricity connection over 6
   months from October 2022.


WHO IS ELIGIBLE FOR THE ENERGY BILLS SUPPORT SCHEME?

 * All households with a domestic electricity connection in Great Britain are
   eligible for the £400 discount. There is no need to contact energy suppliers
   concerning this.


HOW WILL I RECEIVE THE DISCOUNT?

 * The £400 discount will be administered by suppliers and paid to consumers
   over 6 months with payments starting from October 2022, to ensure households
   receive financial support over the winter months
 * households will see a discount of £66 applied to their energy bills in
   October and November, rising to £67 each month from December through to March
   2023
 * the discount will be provided on a monthly basis regardless of whether
   consumers pay monthly, quarterly or have an associated payment card
 * households will never be asked for their bank details, and those with a
   domestic electricity connection will not need to apply
 * there is no need to contact your supplier as all domestic electricity
   customers will be automatically eligible. Electricity bill payers should
   enquire with their supplier if they have not received their first instalment
   by the end of October.

Breakdown of the delivery process for each payment method:

 * direct debit customers will receive the discount automatically as a reduction
   to the monthly direct debit amount collected, or as a refund to the
   customer’s bank account following direct debit collection during each month
   of delivery
 * standard credit customers and payment card customers will see the discount
   automatically applied as a credit to standard credit customers’ accounts in
   the first week of each month of delivery, with the credit appearing as it
   would if the customer had made a payment
 * smart prepayment meter customers will see the discount credited directly to
   their smart prepayment meters in the first week of each month of delivery
 * traditional prepayment meter customers will be provided with redeemable
   vouchers or Special Action Messages (SAMs) from the first week of each month,
   issued via SMS text, email or post. Customers will need to take action to
   redeem these at their usual top-up point


I’M ON A TRADITIONAL PREPAYMENT METER. WILL I RECEIVE THE DISCOUNT?

 * you’ll get redeemable vouchers or Special Action Messages (SAMs) from the
   first week of each month.
 * your supplier will let you know:
   * how you will get your discount - by Special Action Message, or as a text,
     email or paper voucher
   * where to redeem your vouchers, for example at a Post Office branch or a
     PayPoint shop
 * Payzone outlets are unable to accept the vouchers.
 * if you get your discount by text, email or as paper vouchers you’ll need to:
   * check your supplier has the right contact details for you, so that you get
     the vouchers
   * redeem the vouchers at your local top-up point
 * the government will work with suppliers and third parties on targeted
   communications and messaging for PPM customers to ensure vouchers are used


I AM A DIRECT DEBIT CUSTOMER. WHAT SHOULD I LOOK OUT FOR WHEN CHECKING WHETHER
THE DISCOUNT HAS BEEN CREDITED TO MY ACCOUNT? WILL IT SHOW UP ON MY ACCOUNT WHEN
I LOG IN ONLINE?

 * direct debit customers will receive the discount automatically as a reduction
   to the monthly direct debit amount collected, or as a refund to the
   customer’s bank account following direct debit collection during each month
   of delivery
 * more supplier guidance on this will be published ahead of October’s launch


I PAY FOR ENERGY IN MY RENT - HOW DO I MAKE SURE MY LANDLORD PASSES ON THE
REDUCTION?

 * Landlords who have a domestic electricity contract with a licensed
   electricity supplier and then resell the electricity to their tenants based
   on energy usage must comply with the maximum resale price rules.
 * the maximum resale price for electricity is currently set as the same price
   as that paid by the person reselling it. Under these circumstances, we expect
   landlords to pass on the discount received to each tenant
 * landlords with a domestic electricity connection who charge ‘all inclusive’
   rent, such as the case for many student houses, where a fixed cost for energy
   costs are included in their rental charges, should also be passing on the
   discounted payments to tenants
 * there are rules which can protect tenants and ensure they receive the benefit
   of this policy. See Ofgem’s guidance on how to ensure customers are being
   charged no more than they should when they buy the electricity through their
   landlord, including what to do if they think there has been a mistake


IS THE ENERGY BILLS DISCOUNT UK-WIDE?

 * The Energy Bills discount will apply to consumers in England, Scotland and
   Wales
 * the UK government is urgently working to ensure the people of Northern
   Ireland receive the equivalent of this support as soon as possible


WILL I GET THE DISCOUNT IF I LIVE IN A PARK HOME, HOUSEBOAT OR AM AN ENERGY
CONSUMER LIVING OFF THE GRID?

 * Approximately one per cent of UK households are currently ineligible to
   receive Energy Bills discount as they do not have a domestic electricity
   meter and a direct relationship with an electricity supplier
 * the government has confirmed 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 Bills discount
 * an announcement with details on how and when these households across Great
   Britain can access this support will be made this Autumn


WHAT HAPPENS IF I SWITCH ENERGY SUPPLIERS OR MY HOUSEHOLD CIRCUMSTANCES CHANGE?

 * Electricity suppliers will apply the discount to bills from October 2022.
   This will be done by meter points, so it won’t matter if you switch supplier
 * the Scheme will now provide 6 monthly payments based on 6 qualifying dates
   than a single date in October. This allows new eligible households to benefit
   from the relevant portion of the total £400 as there will be multiple
   qualifying dates


WHAT IF MY ENERGY SUPPLIER GOES BUST?

 * Government will ensure that customers who switch payment methods, or whose
   energy suppliers fail, will not be penalised
 * if a supplier is not able to provide the discount to all its eligible
   customers, the supplier must report to BEIS and Ofgem what steps it is taking
   to ensure delivery


WHAT IF I CHANGE PAYMENT METHOD/TARIFF?

 * Eligible customers will receive their discount on a monthly basis regardless
   of their supplier, payment method or tariff


HOW WILL IT WORK FOR CUSTOMERS IN ARREARS / IN DEBT?

 * All households with a domestic electricity connection in Great Britain are
   eligible for the £400 discount.
 * the government expects and encourages suppliers to make it their priority to
   work actively to move customers with large arrears balances onto repayment
   plans wherever possible. This is already a licence condition for suppliers


WHY ARE PEOPLE WITH SECOND HOMES GETTING MORE THAN ONE PAYMENT?

 * We want to ensure households start to receive this support from October and
   taking action on second homes could risk the start date for delivering the
   Scheme as a whole for winter, which would have an impact on many more
   households including the most vulnerable
 * we acknowledge that delivering support at this scale and pace means there may
   be instances where people receive the discount multiple times if they are
   paying multiple electricity bills
 * however, any delay would further disadvantage consumers experiencing high
   energy bills, particularly those in lower income households who are most in
   need of the payment
 * removing the discount from those with multiple meters could also stop people
   who are paying on behalf of elderly/disabled individuals from receiving a
   needed discount


WHY ISN’T THIS SUPPORT TARGETED TO VULNERABLE HOUSEHOLDS WHO NEED IT MOST?

 * The Energy Bills discount is an essential part of the government-wide Help
   for Households cost of living support package set out on 26 May 2022,
   providing help for as many households as possible throughout the country
 * households most in need will be eligible for further support in addition to
   the Energy Bills discount. This includes:
   * a £650 one-off Cost of Living Payment for around 8 million households on
     means tested benefits
   * a one-off £300 Pensioner Cost of Living Payment for over 8 million
     pensioner households to be paid alongside the Winter Fuel Payment
   * a payment of £150 for around 6 million people across the UK who receive
     certain disability benefits
   * a £500 million increase and extension of the Household Support Fund


WHY CAN’T I DONATE MY £400 TO CHARITY INSTEAD?

 * The discount is being provided to households to assist with the cost of
   energy bills and it is for individual households to decide if they do not
   wish to retain it. Any charitable donation is an individual’s choice from
   their own assets


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Published 29 July 2022


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