The UK Government has published new details on how it plans to deliver the £400 energy bill discount to an estimated 29 million households across the country from this October. Included in the new guidance is crucial information for those using a pre-payment meter, both smart and traditional.
Every household with a domestic electricity account will automatically qualify for the £400 non-repayable grant which 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.
Smart pre-payment meter customers will see the discount credited directly to their smart pre-payment meters in the first week of each month. Traditional pre-payment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in 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.
However, the guidance states that traditional pre-payment meter customers must ensure their supplier holds up-to-date contact details for them so they can receive their voucher and understand how to redeem it.
This means people need to check their energy supplier has he correct:
- Home address
- Mobile number
- Email address
It also said that the UK Government will work with suppliers and third parties on targeted communications and messaging for pre-payment meter customers to ensure vouchers are used.
Despite the plan to provide monthly support to millions of customers, several energy experts have warned that households could burn through that money in just a few days.
The latest forecast from Auxilione suggests that the price cap will rise to £3,576 for the current £1,971 from October 1.
The energy experts said: “Ofgem pointed out a potential change they are considering internally to remove around £100 from the cap (in an allowance).
"We've included it here, hence the reduction to the previous forecast. But despite this ray of light, most of the rest of the forecast contains pain for households."
Based on this week's gas prices, they think the price cap will hit £4,704 next January and £5,856 in April.
It will then fall but remain at stomach-churning levels, hitting £5,235 in July and £5,235 next October.
Ofgem is set to announce the new price cap, which will come into effect from October 1, on Friday, August 26.
Who is eligible for the £400 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 as it will be paid automatically - nobody needs to apply for this UK-wide support.
How will I receive the discount?
The £400 discount will be administered by suppliers and paid to customers over six months with payments starting from October 2022.
This discount will be applied as follows:
- October - £66
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
The BEIS said that the discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
If you do not receive the first instalment by the end of October, you should contact your energy supplier.
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