The UK Government has shared new advice regarding the £400 Energy Bills Support Scheme (EBSS).
It has revealed how the scheme will be administered to people who live in park homes, people who do not use gas for heating, and tenants who pay for energy as part of their rental agreement.
As reported by the Daily Record, the Energy Price Guarantee will lower the unit cost of electricity and gas so that UK households pay on average approximately £2,500 per year on their energy bills. It will be based on usage, but households will save around £1,000 on average.
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It is important, however, that your bills and savings may be bigger or small depending on how large your home is, its insulation, how many people live there, and how much energy you consume. The newly released GOV.UK guidance reveals how the £400 rebate will be delivered to those who do not have a domestic electricity connection.
Read on for a full summary of the new £400 Energy Bills Support Scheme (EBSS) guidelines.
If you are not connected to the grid
If you are not on a standard gas or electricity contract, for example if you live in a park home or are on a heat network, will get support equivalent to both the Energy Price Guarantee and the Energy Bills Support Scheme. The business that deals directly with the energy provider, for example the owner of the park, will get support through the Energy Bill Relief Scheme.
The UK Government is introducing legislation so that, in situations such as these, the benefits must be passed directly on to residents.
Consumers are not required to apply for the support, as they will get it automatically. It will be issued by the end of 2022.
Every domestic household will also get the £400 Energy Bills Support Scheme. The UK Government is considering how different types of consumers will receive this.
If you do not use mains gas for your heating
The Alternative Fuel Payment (AFP) provides a single payment to households that employ alternative fuels to heat their homes, for example eating oil or LPG rather than mains gas. The £100 boost ensures that households that do not benefit from the Energy Price Guarantee get support.
Those eligible for the AFP will get a £100 credit on their electricity bills in the winter. Households that qualify for but do not get the AFP or the £100 heat network payment will get the £100 through the AFP Alternative Fund, which will be provided by a designated body.
More information regarding the AFP Alternative Fund will be shared by the UK Government soon.
The guidance says: “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.”
If you pay for your energy as part of your rent
If you pay for your energy as part of your rent, your landlord will benefit from the Energy Price Guarantee, assuming they have a domestic energy contract with a licensed supplier. This should be reflected in the price they charge you starting October 1.
Additionally, they will get the Energy Bills Support Scheme and should pass this on to you. Legislation is being introduced by the UK Government to make sure this happens.
The discount should be passed on by your landlord regardless of how much you are charged for your energy usage. If they charge you based on your use, they must do this at the same price as they pay, including the Energy Price Guarantee.
Meanwhile, if you pay for ‘all inclusive’ rent that incorporates 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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