Julia Lopez MP welcomes the announcement that the Energy Bills Support Scheme Alternative Funding (EBSSAF) and the Alternative Fuel Payment Alternative Fund are now open for eligible households to claim their support. These schemes are designed to provide support with energy costs for to those who were unable to access this automatically via the Energy Bills Support Scheme, either because they do not have their own domestic electricity supply or use alternative fuels. Constituents may find below further advice on how to access these support schemes as well as information on the other schemes put in place by the government to support households.
Energy Bills Support Scheme – Alternative Funding (EBSSAF)
The EBSSAF is providing support of £400 to around 900,000 households in Great Britain who do not have a domestic electricity supply and who were unable to receive support automatically through the Energy Bills Support Scheme. The online application portal and contact centre helpline launched on 27 February and closes on 31 May. Once an application has been made, applicant’s details will be shared with their local authority who will deliver the single, non-repayable support into the applicant’s bank account.
Alternative Fuel Payment (AFP)
The AFP scheme is providing a one-off payment to UK households that use alternative fuels for heating, such as heating oil or LPQ, instead of mains gas. This payment will ensure that all households who do not benefit through the EGP to hear their homes, receive support for the cost of the fuel they do use. Most households should have received the payment through their electricity supplier by 27 February. An application scheme opened on 6 March in Great Britain, for households who will need to apply for the funding.
Pre-payment meters (PPMs)
Following the intervention of the Energy Secretary, Ofgem and energy suppliers agreed to a pause in the forced installation of prepayment meters. This pause was originally scheduled to end on 31 March, but Ofgem have now announced that the pause will continue beyond this date, until a new code of practice has been implemented.
Ofgem are also undertaking a compliance review of the sector alongside a specific investigation of British Gas and have set up a web portal with Citizen’s Advice for consumers to report on their experience. Where wrongdoing is identified, it is critical that consumers are offered appropriate redress, which could include measures such as compensation and installation of a credit meter. Ofgem have called on suppliers to proactively provide redress, rather than waiting for their compliance action to finish.
Finally, it is currently the case that energy costs a typical dual fuel prepayment meter customer are higher than those for direct debit. The government has taken action in the Budget to end this ‘prepayment penalty’, introducing fairness reforms to energy bills to remove the premium paid by households using prepayment meters. This will cut energy bills for over four million families across the UK by bringing their costs into line with those paid by comparable customers on direct debits. The change is expected to come into effect from July 1 through updates to the Energy Price Guarantee.
Energy Price Guarantee (EPG)
The EPG limits the amount suppliers can charge per unit of energy used. The Chancellor, Jeremy Hunt MP, announced in the Spring Budget that the EPG will be extended at the same level for an additional three months to the end of June 2023. This means that a typical household energy bill in Great Britain for dual-fuel gas and electricity will come down to an annual equivalent of around £2,500. By the end of June, the EPG will have saved a typical household in Great Britain around £1,100 since the scheme began in October 2022.
Energy Bills Support Scheme (EBSS)
The EBSS delivers a £400 non-repayable government discount in instalments over six months from October 2022 to March 2023 to help 28 million households with energy bills. Customers with traditional prepayment meters need to take action to redeem the vouchers they are being sent, either at a Post Office or a PayPoint outlet as designated by their supplier. All vouchers must be used by 30 June when the scheme will close.
Non-Domestic Alternative Fuel Payment (NDAFP)
Eligible non-domestic consumers using alternative fuels off the gas grid will receive a one-off fixed payment of £150 through electricity suppliers. A top-up payment of £150 will be available for all customers that use over 10,000L of heating oil (kerosene) per property per year. These top-up payments receive an application via GOV.UK and will be banded based on the level of usage. Alternative funding will be available to provide the £150 payment to those non-domestic customers in Great Britain who will not be able to receive automatic payments under the scheme.
