Last week, Chancellor Rishi Sunak announced that the Uk Government will double the £200 energy bill ‘loan-not-loan’ to £400 which is set to be applied to all domestic electricity accounts from October and turned it into a grant meaning nobody needs to pay it back.
The additional support came in the wake of Ofgem predicting that the October price cap is expected to increase by a further £800 to £2,800, potentially putting millions of households under even more pressure during the coldest months of the year.
However, following the announcement, Utility Warehouse (UW) is now offering consumers a fixed energy tariff £550 below the expected October price cap.
The firm is offering multiservice customers - those who take energy plus any two of Utility Warehouse’s broadband, mobile and/or insurance services - the chance to fix their energy price at £2,250 until May 2023.
Including the UK Government’s £400 rebate, this represents a reduction in costs through the winter at an effective cost of £1850 until May 2023.
Commenting on the new offer, Andrew Lindsay, Co-CEO said: “Enough is enough. Consumers across the UK have been told it’s not the right time to switch their energy. That’s simply not the case.
“We’re uniquely positioned to offer households a fixed energy tariff of £2,250 that, together with the UK Government rebate of £400, will help families to save this winter. They can more than avoid the impact of the huge price rise coming this October, and actually, see a reduction in their energy bills against the current price cap.”
Just be aware that new multiservice customers may find the additional products or services have a contract length longer than the fixed tariff deal, so always check your options first before making any decision.
How will the £400 energy rebate work?
Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher - this will depend on whether they have a smart meter or not.
Who gets it
Households in Scotland, England and Wales - equivalent support will be delivered to people in Northern Ireland.
This support is on top of the £150 Council Tax rebate for households in bands A-D (and with a reduction in Scotland), which was announced in February, and which millions of households have already received.
Read the full support factsheet on the GOV.UK website here.
To keep up to date with the energy crisis, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
