energyadvice.scot News
Budget Announcement (15/03/23)
Chancellor Jeremy Hunt has announced that the £2,500 household cap on energy bills will continue for another three months.
Typical household energy bills had been expected to rise to £3,000 a year from April. But in his Spring budget statement, Mr Hunt confirmed the Energy Price Guarantee would be extended until June.
At the same time, the £400 discount provided by the Energy Bills Support Scheme – which has been paid in monthly instalments of £66 and £67 since October – will come to an end.
Mr Hunt also confirmed a series of cost-of-living support payments including £300 for pensioner households to be paid next winter, and a further £150 for people on disability benefits. Low-income households in receipt of eligible benefits will get a further £900 to help with the cost-of-living. This will be paid in three instalments in spring, autumn and spring 2024.
Alternative Fuel Payment (AFP) Information
The alternative fuel payment is an additional payment from the government for any household that uses alternative fuels for heating. The payment is £200. Customers may be eligible for the payment if their home is not connected to the gas grid, and they use alternative fuels for heating.
Alternative fuels are:
- tank or bottled gas
- liquid petroleum gas (LPG)
- oil
- solid fuel (Coal, Wood, Peat)
In most cases, the payment will be credited to an eligible person’s electricity account by their supplier, and they will not need to apply. The way they will receive the payment depends on how they pay for their energy, but in most cases will be the same method as they received Energy Bills Support Scheme payments.
Some suppliers will offer a refund of the credit so that it can be spent on alternative fuel instead of electricity, and customers can reach out to their supplier to see if this option is available.
The government will provide suppliers with a list of who they need to provide the payment to. Payment may not be automatic if a home is either in an area which is mainly connected to the gas grid or not connected to either the gas or the electricity grid.
In this case an application for payment is required through the AFP Alternative fund.
If you did not receive the payment automatically through your electricity supplier, you may still be entitled to apply. To be eligible you must be applying for your main home and be responsible for paying for the energy your household uses.
The main home must be:
- in a residential park home
- on a boat on a permanent residential mooring
- on a permanent Gypsy and Traveller site
- part of a heat network without an electricity meter
- in social or private rented accommodation which has a business energy connection or a communal electricity supply
- off the mains electricity or gas grid
- part of a business property (such as a farm or a flat above a shop)
Customers cannot apply if:
- They have already received the £200 payment as a credit from their electricity supplier.
- They live in purpose-built student accommodation
- They live in a care home
- They live on a boat as a continuous cruiser (currently under review)
- They live on a non-permanent caravan or mobile home site (currently under review)
- They live in accommodation provided by your employer (such as seasonal workers, ‘service occupiers’, security guards, building caretakers)
- They live in a building where they’re acting as a property guardian
- They live in business premises, such as a pub or hotel, where their address is the same as the business address
Customers can apply online via the portal :
https://www.gov.uk/apply-alternative-fuel-bill-support-if-not-automatic
Applicants will need to supply:
- an email address or phone number (if they have one)
- bank account details.
- proof that they’ve spent £200 on alternative fuels to heat their home since September 2022 (for example, a delivery note or receipt)
In addition, if they are not registered for Council Tax, they will need to provide proof of address.
The team at energyadvice.scot can offer advice and support on a range of energy-related matters, including Alternative Fuel Payment and other sources of support that may be able to help.
The team are available on 0808 196 8660 (Monday to Friday, 9am-5pm).
If you have received the payment and do not use an alternative fuel, you should contact your supplier to find out what their process is in this situation.
Force Fitting of Prepayment Meters (By Warrant)
** All suppliers have been asked by OFGEM to pause action on the force fitting of prepayment meters and remote switching of smart meters to prepayment mode until 31st of March 2023. During this time, Ofgem will perform a review of their practices and that of any third-party organisation who carries out this type of work on their behalf (such as debt collection agencies)**
An energy supplier can switch a customer to a prepayment meter if they owe debt that is not being paid back. A customer must be at least 28 days in arrears before a switch to prepayment is made.
Suppliers are obligated to try to come to a payment solution with the customer, and only fit a prepayment meter as a last resort. They must have taken “all reasonable steps” to agree payment.
They also can only fit a prepayment meter if it is safe and practical to do so – they should not fit one if a customer is vulnerable or if fitting the prepayment meter would be extremely traumatic for the customer.
Visit our knowledge Centre for more information on vulnerable customers.
To force fit a prepayment meter, a supplier must apply for a warrant. The supplier should give notice to the customer in writing of the court date for the warrant hearing.
During the time when this action is taking place, a customer can contact their supplier and try to arrange an alternative solution which the company must agree to if it is a reasonable request.
If no agreement is reached and a warrant is obtained, the customer will be given 7 days’ notice for gas meters and 7 working days’ notice for electricity meters before the installation of prepayment solutions.
The supplier can charge for the costs for the warrant. The cost of a warrant is £150.
*OFGEM has launched a market compliance review into supplier procedures around prepayment meters, and the Scottish Government has established a working group to review the process for dealing with utility warrants, including the data recorded, with a view to improving the information currently available.
It is important to note that the Scottish Government does not have powers to change the process.*
If a customer is not happy with the decision because they do not think they were treated fairly during the process, or they do not believe a prepayment meter is suitable for them, they should make a complaint to their supplier.
If they are unable to resolve the issue with their supplier, they can take the case to the ombudsman.
The energyadvice.scot team can help in circumstances where you are struggling to resolve issues with energy, including disputes with suppliers over billing and debt.
Call 0808 196 8660 (Monday to Friday, 9am-5pm).
The Energy Bills Support Scheme (EBSS)
The Energy Bills Support Scheme (EBSS)
With the Energy Bills Support Scheme (EBSS) is a £400 payment from the government that will be paid each month in instalments up until March 2023. The first payments started on the 1st of October 2022.
The payments will be applied to your electricity account or sent as vouchers depending on how you pay for your energy. The payment amounts for each month are as follows:
- October 2022 – £66
- November 2022 – £66
- December 2022 – £67
- January 2023 – £67
- February 2023 – £67
- March 2023 – £67
Every household with a domestic electricity connection in the UK is eligible for the £400 discount. If you do not have a domestic energy connection, or do not have a direct relationship with your electricity supplier, you may be eligible for the alternative EBSS scheme.
How you receive the EBSS discount will depend on your supplier and how you pay for your electricity.
Traditional Prepayment
Customers with a traditional prepayment meter, will be sent the voucher via email, post or text.
This contact should include details of how to redeem the voucher, and if it is a Post Office or PayPoint voucher.
Vouchers expire after 90 days but the customer can ask their supplier to reissue them.
All vouchers must be redeemed by 30 June 2023.
For reference, this is what a postal voucher letter will look like:
Smart Prepayment
Smart prepayment customers should have the vouchers automatically sent to their meter. If they have not received a payment, they can contact their supplier to sort out the issue.
Direct Debit
You’ll get the discount either as a reduction to your monthly direct debit amount or as a
refund to your bank account after the monthly direct debit collection. You can contact your supplier to find out how they are applying the discount.
Bank Transfer
The discount will be applied to your energy account each month.
The discount will be supplied monthly, regardless of the frequency of customer payments – meaning those who pay quarterly or with payment cards will be paid the amounts with the same regularity (i.e., monthly).
You will never be asked for your bank details from Ofgem, or anyone else – Those with a domestic energy supply do not need to apply for the discount.
There are scammers reaching out to people asking for financial and personal information. It is important to ensure we DO NOT Supply this information and report any suspected scams or suspicious activity at www.scamwatch.scot.
You do not need to get in contact with your energy supplier, as all domestic energy customers will be automatically eligible.
If you have missed a payment from the scheme, or are having issues with a voucher, you should contact your supplier for assistance.
If you require energy advice, or are having difficulty reaching your supplier, energyadvice.scot can help!
Call us on 0808 196 8660 (Monday to Friday,9am-5pm).
Energy Bill Support Scheme (EBSS) Payments (EBRS and EPG Schemes) through landlords / intermediaries
Do you pay your landlord for your energy supply?
Is electricity and gas included in the amount you pay for rent?
Any ‘intermediaries’ (the landlord as the middleman) who receives support from the EBSS, EBRS or EPG schemes must ensure that they pass on that benefit to end users (in most cases the tenant) in a way that is ‘just and reasonable’.
Answers to some of the more common questions on EBSS payments and how these should be passed on –
If you pay for your energy as part of your rent or through a token or coin system, it is important to check that you are being charged the right amount for your energy.
Any ‘intermediaries’ (such as a landlord, or housing association) who receive support from the EBSS, EBRS or EPG schemes must ensure that they pass on that benefit to end users (in most cases the tenant) in a way that is ‘just and reasonable’.
Intermediaries must pass on the discount regardless of how the end user pays for their energy use.
They must make sure the amount the discount or award that is passed on is ‘just and reasonable’ but can take into account other discounts they have given, or if they have shielded end users from all price rises.
An example of how this would work, is that if a landlord had not raised the rent in line with energy price increases, to try and protect their tenant from the rise, this difference could be deducted from the amount of discount that is passed on to the tenant.
At all times the landlord should be clear about how what discount is being passed on, and how it is being calculated
Intermediaries are any individual or organisation that hold an electricity or gas contract and are passing on the cost of the energy to the end user. Some examples of intermediaries are:
- landlords
- sublets
- student accommodation managers
- social housing providers
- local authorities (for council housing)
- site owners (for park homes)
- site managers
- marinas if using shore power (for boat homes)
- combined heat and power operators
- electric vehicle charging operators
- other residential building managers
The type of benefit that is passed on is dependent on the way the intermediary pays for their energy.
Domestic Contracts
If the intermediary has a domestic contract with a supplier, they will receive the Energy Price Guarantee (EPG) and the Energy Bill Support Scheme (EBSS)
They should pass this benefit onto their end users and ensure that any automatic tariffs (such as from a coin meter) are set in line with the EPG rates. If the landlord has protected their tenants from some of the energy price rises, they may be able to retain some of the benefit.
Business Contracts
If the landlord has a business contract, they will not receive EBSS payment, but will receive the Energy Bill Relief Scheme (EBRS.) They should pass this benefit onto their end users and ensure that any automatic tariffs (such as from a coin meter) are set in line with the EBRS rates. If the landlord has protected their tenants from some of the energy price rises, they may be able to retain some of the benefit.
Heat Networks
It is the responsibility of the heat supplier to notify each of its consumers in writing that the heat supplier has been provided with a benefit under the EBRS.
The notice must be given to consumers by the later of these two deadlines:
1st December 2022
Within 30 days of the EBRS benefit being provided to the heat supplier.
Further Reading and Examples
https://www.gov.uk/government/publications/pass-through-requirements-for-energy-price-support-provided-to-intermediaries/guidance-on-the-pass-through-requirements-for-energy-price-support-in-great-britain-provided-to-intermediaries
The Regulations require a heat supplier to provide either the full benefit it receives from the EBRS, or if less than the full benefit, a just and reasonable pass-through amount calculated in accordance with the Regulations
The heat supplier must provide consumers with evidence showing what factors it has taken into account in determining that the pass-through amount was just and reasonable. The factors which a heat supplier can take into account are:
- the amount which the heat supplier paid for the energy which was subject to price reductions under the EBRS;
- any other costs which the heat supplier incurred in supplying heating and hot water during the period it benefits from the EBRS. This includes costs from distributional heat losses, efficiency of generation, operational, maintenance, and capital costs, and set-up and operation costs of effecting the EBRS pass-through;
Any losses which the heat supplier has incurred as a result of the cost of purchasing energy exceeding the amount charged to consumers for the supply of heating and hot water during the period for which the scheme benefit was provided (the EBRS will apply to existing fixed price contracts that were agreed on or after 1 December 2021). For example, heat suppliers with ‘price promises’ to their consumers may have incurred losses from absorbing higher wholesale energy costs whilst holding prices for consumers down. A heat supplier can factor these losses into determining a pass-through amount.
In addition, the Regulations specify that a pass-through amount is just and reasonable if it is calculated on the same basis used by the heat supplier when calculating charges to the consumer when it was provided with the EBRS benefit. Specifically, if when it was provided with the scheme benefit, the heat supplier was calculating the price of heat charged to the consumer based on:
- the consumer’s heating and hot water consumption; or
- an amount which represents a proportion of the cost incurred by the heat supplier when purchasing the energy needed to supply heating and hot water
the heat supplier’s calculation of the pass-through amount for each consumer must reflect this approach.
Further reading and examples
The first thing you should do is to speak to your landlord to see what the situation is. They should be able to tell you how payments are being passed on to you.
The team at energyadvice.scot can provide more information on your next steps, or if you are still awaiting on EBSS payments from previous month(s).
Call 0808 196 8660 (Monday to Friday, 9am-5pm) or speak to the team online.
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We provide free, practical advice and information on energy-related matters to the citizens of Scotland.
We can provide advice and information if you:
- Have basic or complex energy enquiries relating to your supplier
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- Experiencing problems with your energy billing
We provide free, practical advice and information on energy-related matters to the citizens of Scotland.
We can provide advice and information if you:
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- Wish to understand your energy supplier’s complaints process
- Experiencing problems with your energy billing
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