Energy companies have issued statements as the regulator Ofgem confirmed the price cap will rise in October.
Energy bills are set to soar as an 80 per cent rise of the price cap will push the average yearly Direct Debit bill to £3,549 - around £295 a month.
Those on prepayment meters, the price cap level will put the average yearly bill to £3,608, while customers who pay by standard credit (cash or cheque) will pay an additional £215 with an average yearly bill of £3,764.
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While there is a £400 energy discount being issued to households across Scotland, England and Wales, experts warn this will not be enough. A report from York University said that three-quarters of Scottish households could fall into fuel poverty this year.
As Birmingham Live reports, energy firms have since issued advice and guidance for customers ahead of the energy discount.
The energy discount payment will be issued in instalments, with a discount of £66 applied to energy bills in October and November, rising to £67 each month from December through to March 2023.
Here is what the energy suppliers are saying about the payments.
E.ON
E.ON has an extensive webpage detailing information on the energy bill discount, here. The energy giant helpfully answered some of the most frequently asked questions regarding the discount.
The energy firm have explained that customers won't be given the full £400 in one payment as the energy discount is being supplied by the UK Government. They are giving the energy suppliers the money in six monthly instalments to pass onto customers.
E.ON also stresses that the £400 energy payment will not impact the Warm Home Discount payment, and urge customers to look out for more details about next winter's scheme.
It adds: "The money is being set aside by the government to help with winter bills and the upcoming price cap, therefore the money should go towards paying for energy.
In line with our credit refund policy we would need a meter reading so we can bill you up to date and understand your true balance.
We can refund the credit as long as this doesn't put you into arrears. However, it's important to note the increase in cost will likely mean any credit built up now will be used towards winter usage, so refunding that now may impact you later in the year and into the beginning of next year."
Commenting on Ofgem's announcement, an E.ON spokesperson said: “Global gas prices continue to reach record levels and this has affected the energy costs suppliers pay and the bills we pass on to customers. Prices will have to increase in line with Ofgem’s price cap to reflect the real cost of wholesale energy around the world.
“We know these are incredibly difficult times for our customers and we’d urge anyone who is struggling to get in touch as there are ways we can help, including cold weather payments and targeted support such as through our E.ON Next Energy Fund. We will also be issuing the £400 payment as part of the Government’s Energy Bills Support Scheme and our customers can find out more about how this payment will be sent to them here.
“We closely monitor the level and type of support our customers need, which currently includes us working with support agencies such as StepChange, Citizens Advice and Energy Advice Scotland and we have dedicated phone lines for customers at risk of being off supply or in other emergency situations. Customers are able to contact us 24/7 by WhatsApp, social media and email, and we also have information and support on our website to help customers with their individual queries.
“Energy suppliers cannot tackle global price rises alone. The solution is going greener; reducing how much energy we use and producing what we need from more renewable sources. Millions of families could save hundreds of pounds – and reduce carbon emissions – by improving their homes and we’ve called on the Government to increase the pace and scale of energy efficiency schemes.
"We need to end our reliance on gas, switching instead to cleaner and more efficient forms of heating. We need to reassure people that the greener option will also be the cheaper option in the longer term.”
British Gas
On the upcoming energy bill discount, British Gas said: "We know this is a difficult time for some of our customers. We're providing the information...based on our best understanding at the time of publication. Please also read the updated cost of living factsheet on the gov.uk site"
"Many households are missing out on benefits they are entitled to. The Bounce Back Checklist provided by the British Gas Energy Trust details the main benefits and schemes to help you increase your income - whether you're working or not.
"There's quick links and details of how to apply. The government is urging eligible pensioners to claim Pension Credit to help with cost of living."
The British Gas Energy Trust provides valuable information to consumers and can help you getting further discounts. It is not exclusively for British Gas customers, so every consumer should take a look at available support.
Meanwhile, The British Gas Energy Support Fund will officially open on September 12 and is designed to help British Gas customers with an energy debt of between £250 and £750. Then you can apply via this website.
EDF
EDF Energy has explained: "Your payments will automatically be paid so there is no need to call us. If you only have a gas account with EDF, payments will come from whoever supplies your electricity. Your electricity supplier may make payments in a different way."
For those who are pre-payment customers, you will given vouchers which can be redeemed as long as you show proof of ID. Full details including expiry dates will be provided when you receive the vouchers from the Post Office.
The Energy Bills Support Scheme is only one part of the cost of living funding the government are offering households. EDF are encouraging customers to find out more about other schemes you may be entitled to here.
Ovo Energy
Ovo Energy has issued a warning with energy-related schemes rising with fraudsters exploiting the energy crisis and confusion surrounding the price increases.
Ovo said: "We're aware that scam Energy Bills Support Scheme emails and text messages are being sent to customers. You can see examples here. We'll never ask for your bank details, so please be extra careful not to give them to anyone. If you think you might have been a victim of a scam or fraud, there's advice on what to do on the government's website."
Thousands have reported receiving text messages claiming to be from suppliers telling customers they are eligible for £400 off their bills and they must click a link to receive it. However, this is a scam.
Scottish Power
Scottish Power has detailed how the energy bill discount will be paid into accounts on their community message board.
One user posted a detailed breakdown of how the £400 will be deposited:
"Customers paying by direct debit, either monthly or quarterly, will see an automatic deduction off those bills. Those with smart pay as you go meters will see an automatic monthly top-up added to their account, meaning they will have to add less credit to their meter for the total energy they use.
But those with older non-smart prepayment devices will not get this money automatically. Instead, they will receive an energy bill discount voucher in the first week of each month, via text, email or in the post. Customers will have to redeem these in person at their usual top-up point, such as a local Post Office."
The energy firm have also launched the Scottish Power Hardship Fund. Claimants will need to apply to Sigma Connected Support, which is the group that delivers the Scottish Power Hardship Fund.
Those who claim benefits such as Income Support, Job Seekers Allowance (JSA), Pension Credit, or Employment and Support Allowance could be eligible for the fund.
Applications can be made over the phone on 0121 285 2595, or by email after downloading the application form on Sigma Connected Support’s website.
SSE
SSE has listed schemes customers could be eligible for.
The Fuel Direct scheme helps to pay your energy bills directly from your benefits, the support is overseen is by the Department for Work and Pensions and you're eligible if you receive:
- Income-Based Jobseeker's Allowance
- Income Support
- Income-related Employment and Support Allowance
- Pension Credit
- Universal Credit (but only if you're not working)
SSE also warned against scams: "We’re aware that scam Energy Bills Support Scheme emails and text messages are being sent to customers. You can see an example here.
"We’ll never ask for your bank details for your Energy Bills Support Scheme discounts, so please be extra careful not to give them to anyone. We’ll only send vouchers by email or post – not text message. There's advice on the government's website, if you think you might have been a victim of a scam or fraud."
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