The UK Government has issued new guidance on how the £400 Energy Bills Support Scheme (EBSS) will be delivered to people living in park homes, those who do not use gas for heating and tenants who pay for energy as part of their rental agreement.
The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household across the UK pays, on average, around £2,500 a year on their energy bill, for the next two years. The saving will be based on usage, but on average usage a household will save £1,000 a year - based on current prices from October.
However, it’s crucial to be aware that your actual bill and savings could be higher or lower depending on the size of your home, how well it is insulated, how many people live there and how much energy you use.
The newly updated guidance on GOV.UK shares more details on how the £400 discount will be applied to people without a direct domestic electricity connection.
Below is an overview, full details can be found here.
If you are not connected to the grid
Those households not on standard gas or electricity contracts, such as those living in park homes or on heat networks - and so outside the scheme - will receive support equivalent to both the Energy Price Guarantee and the Energy Bills Support Scheme.
The business which has the direct commercial relationship with the energy supplier (for example the park owner) will receive support via the Energy Bill Relief Scheme.
The UK Government is acting now to introduce legislation so that they have to pass the benefit directly on to residents.
Customers do not need to take any action in order to receive this support, which they will receive by the end of the year.
All domestic households will also receive the £400 Energy Bills Support Scheme. The Uk Government is working through exactly how different groups of consumers will receive this, using the most practical and tested routes available.
If you do not use mains gas for your heating
The Alternative Fuel Payment (AFP) will provide a one-off payment to UK households that use alternative fuels for heating.
This includes heating oil or LPG, instead of mains gas.
This £100 payment will ensure that all households who do not benefit through the Energy Price Guarantee to heat their homes, receive support for the cost of the fuel they do use.
Households eligible for these payments will receive £100 as a credit on their electricity bill this winter. Households who are eligible for but who do not receive AFP or the £100 heat network payment, because they do not have a relationship with an electricity supplier for example, will receive the £100 via the AFP Alternative Fund which will be provided by a designated body.
The UK Government will confirm details of the AFP Alternative Fund and when the payment will be made shortly.
The guidance states: “The £100 payment has been calculated to ensure that a typical customer using heating oil does not face a higher rate of growth in their heating costs since last winter, in comparison to those using mains gas who are supported by the Energy Price Guarantee.”
The UK Government said it will continue to monitor the prices of alternative fuels, such as heating oil, and will consider further intervention if required to protect households from extraordinary fuel prices.
The AFP will be provided to all customers who use an alternative fuel to mains gas such as heating oil, LPG, coal, and biomass.
If you pay for your energy as part of your rent
Your landlord will benefit from the Energy Price Guarantee if they have a domestic electricity and/or gas contract with a licensed electricity and/or gas supplier and should reflect this in the price they charge you from October 1, 2022.
Similarly, they will receive the Energy Bills Support Scheme and should pass it on to you - the UK Government is introducing legislation to ensure this happens.
Your landlord should pass on the discount irrespective of how you pay for your energy use. If they charge you based on your usage, they must do this at the same price as they pay, including the Energy Price Guarantee (see Ofgem’s guidance on ensuring customers are being charged no more than they should).
If, on the other hand, you pay an ‘all inclusive’ rent incorporating a fixed charge for energy use, your landlord should pass the Energy Price Guarantee and Energy Bills Support Scheme benefits to you if provided for in your tenancy agreement.
If your landlord has a non-domestic contract, they will benefit from the Energy Bill Relief Scheme and should pass the savings on to you.
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