The government are giving households in England, Scotland and Wales a minimum of £400 off their energy bills this winter to help with the rising costs of living. Unlike the previous £200 ‘loan’ touted earlier in the year, this payment will be in the form of a grant and won’t need to be paid back.
The Energy Bills Support Scheme (EBSS) only applies to domestic bills, paid directly by the domestic user. It isn’t available to businesses or commercial contracts for domestic users (e.g. property management firms). There is no need to apply for the grant as electricity suppliers will automatically apply the credit to bills from October 2022.
Over the course of six months, direct debit and credit customers will have the money automatically credited to their account. Customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
Clarity is needed on how this will affect communal heating systems in supported and sheltered housing, as currently it is believed they will not be able to benefit from the grant. If you are a domestic user with a communal heating system, our advice is to contact your property manager or housing association for more information.
Specifics are still being worked on and the government are actively engaging with energy suppliers, consumer groups and the regulator, Ofgem, to make the delivery as efficient as possible.
Visit the government website for more information.
A message for Property Managers
The Energy Bills Support Scheme (EBSS) only applies to domestic bills, paid directly by the domestic user. It isn’t available to businesses or commercial contracts for domestic users (e.g. property management firms or landlords).
Currently, there is no opportunity for householders to switch supplier. Unit rates and standing charges are limited under the energy price cap, meaning there is no pricing competition among suppliers. Commercial users (including property managers and landlords) can still negotiate and secure energy contracts, enabling them to find the most suitable contracting terms for their needs.
To be eligible to receive the £400, we believe:
- the meter needs to be classified as domestic usage
- the account holder/ primary bill-payer cannot be a business
- it cannot be a communal heating scheme
In the government’s consultation, they state: “Households without a domestic supply contract are therefore not eligible for this scheme”. However, they are looking at options to see whether landlord and communal supplies can receive support in a different way. We will continue to monitor this and send an update to potentially eligible customers in the future.
Specifics are still being worked on and the government are actively engaging with energy suppliers, consumer groups and the regulator, Ofgem, to make the delivery as efficient as possible.
Visit the government website for more information.
