Jump to content

Not everyone needs 'cost of living' energy support payments...


Grumpy Owl
 Share

Recommended Posts

From an email I received from EDF Energy today:

The UK Government’s Energy Bills Support Scheme starts in October. Every household in Great Britain with a domestic electricity supply will get a £400 discount to help with energy bills. This is a government discount which you don't pay back. You don't need to apply for the scheme.

 

The £400 discount is in addition to the Government Energy Price Guarantee. If you’re on a variable tariff, we’ll write to you again before the end of September and explain what this means for you.

 

How will I get the discount?

·     It will be paid in six instalments, starting from October 2022 and ending in March 2023

·     Payment will be made each month

·     The first two payments will be for £66, followed by four payments of £67

How you'll receive the discount depends on how you pay for your energy

Your payment method

How you'll receive the discount

Budget Direct Debit (Monthly)

An automatic refund each month to the bank account your Direct Debit payments are taken from

Cash/Cheque or Direct Debit Whole Amount

An automatic credit to your energy account in the first week of each month

Pay As You Go

An automatic credit to your smart Pay As You Go meter within the first two weeks of each month

Prepayment

A voucher from the Post Office® within the first two weeks of each month to redeem when you top-up

 

So as things stand, as I pay by 'budget direct debit' monthly, I still pay my usual monthly amount, but then I get a 'refund' back into my bank account.

Now this £400 amount is the same for EVERY household with an electricity supply, and so are the monthly refund amounts.

I mentioned elsewhere that my direct debit increased from £57 to £74 earlier this year, because my energy usage had increased during the winter, I assumed this was because I had been using more gas than usual, during the relatively cool spring (my central heating was still coming on at the begining of June!).

However while submitting meter readings today, it transpires that I must have incorrectly read the electricity meter back in June, as todays reading was lower than the last one by about 400 units! After contacting EDF, the previous bill has been cancelled and new one is to be generated with correct readings, so I'm hopeful that my direct debit should decrease back to £57.

Which basically means that for the next six months, the refund I receive will be for more than I am paying,. Who said there was no such thing as 'free energy'? 😅

And as I am on fixed rate tariff until September 2024, I am not concerned by energy price cap increases either!

  • Haha 1
Link to comment
Share on other sites

39 minutes ago, Grumpy Owl said:

And as I am on fixed rate tariff until September 2024, I am not concerned by energy price cap increases either!

 

It would seem that those of us who had the foresight to sign up for long-term fixed-rate tariffs last August/September will prove to be the fortunate ones.

 

I also don't expect the likes of EDF to suddenly 'collapse into administration'.

 

image.png.c7372294b57925385e5004aef07fe33f.png

 

Rather unsurprisingly, EDF are not offering any long-term fixed-rate tariffs now, and I expect it is the same for other energy suppliers.

Just out of curiosity I had a look to see what their 'standard variable rate' tariff will be from 1st October.

 

image.png.697ae279da66d213974d8b85c8096d16.png

What sticks out the most for me is the increase in the daily standing charge for electricity. So even if you don't use any electricity at all, you still pay nearly 50p a day. Strangely the gas standing charge hasn't really increased that much.

 

OK, so maybe I will enjoy this for the next two years, and it may well be the case that come September 2024, when my tariff expires, that I will get a bit of a shock.

 

But who knows what will happen in the next two years - maybe I'll get another pay rise, maybe I'll win the lottery, maybe I won't even be living in this country any more. Or maybe this whole ridiculous situation will have been 'sorted', and energy prices will have reverted back to what they realistically should be.

Link to comment
Share on other sites

9 hours ago, Grumpy Owl said:

From an email I received from EDF Energy today:

The UK Government’s Energy Bills Support Scheme starts in October. Every household in Great Britain with a domestic electricity supply will get a £400 discount to help with energy bills. This is a government discount which you don't pay back. You don't need to apply for the scheme.

 

 

 

The £400 discount is in addition to the Government Energy Price Guarantee. If you’re on a variable tariff, we’ll write to you again before the end of September and explain what this means for you.

 

 

 

How will I get the discount?

 

·     It will be paid in six instalments, starting from October 2022 and ending in March 2023

 

·     Payment will be made each month

 

·     The first two payments will be for £66, followed by four payments of £67

 

How you'll receive the discount depends on how you pay for your energy

 

 

Your payment method

 

How you'll receive the discount

 

Budget Direct Debit (Monthly)

 

An automatic refund each month to the bank account your Direct Debit payments are taken from

 

Cash/Cheque or Direct Debit Whole Amount

 

An automatic credit to your energy account in the first week of each month

 

Pay As You Go

 

An automatic credit to your smart Pay As You Go meter within the first two weeks of each month

 

Prepayment

 

A voucher from the Post Office® within the first two weeks of each month to redeem when you top-up

 

 

I mentioned elsewhere that my direct debit increased from £57 to £74 earlier this year, because my energy usage had increased during the winter, I assumed this was because I had been using more gas than usual, during the relatively cool spring (my central heating was still coming on at the begining of June!).

However while submitting meter readings today, it transpires that I must have incorrectly read the electricity meter back in June, as todays reading was lower than the last one by about 400 units! After contacting EDF, the previous bill has been cancelled and new one is to be generated with correct readings, so I'm hopeful that my direct debit should decrease back to £57.

 

Interesting. The last readings we submitted were questioned, and new ones requested. Just a fortnight later. They're probably all up to something. Maybe another reason they wanted to reduce the number of companies on the market. Easier to fix/control a smaller cartel.

 

Link to comment
Share on other sites

On 9/18/2022 at 11:44 PM, Mikhail Liebestein said:

My DD is £380 a month, but it is quite a big house.

 

I fully appreciate that different people have different situations, and some households use more energy than others.

 

For context, I live by myself in a 1 bed 'apartment' in a low-rise block. I have gas-fired central heating and hot water using a 10 year old combi boiler, and the heating is controlled by a programmable room thermostat, so turns on and off only when needed. The only other gas appliance is a fairly modern cooker. All the electrical devices I have are fairly energy-efficient. So all in all I'm not a great consumer of energy as it is, I can't really 'cut back' much more!

 

But on the other hand, I also earn a fairly modest salary while living relatively frugally; put it this way my energy bill could double and it would still be affordable to me.

 

A refund of £66 pound a month would benefit you more than it does me. But then again, there are some people for whom that kind of amount would still be considered affordable. That's the point I'm trying to make.

  • Like 1
Link to comment
Share on other sites

  • 2 months later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...