MILLIONS of households on prepayment meters are set to receive a £400 energy bill discount from October.
Around 30 million households in England, Scotland and Wales are eligible for the energy bill discount – including the six million on prepayment meters.
The £400 discount will be paid in six instalments between October and March
The way in which the discount is paid will depend on the type of prepayment meter you are on.
Each energy supplier also has the freedom to decide how it will apply the discount on to your energy meter.
Some energy firms will only apply the discount on to electricity meters while others will split the discount equally across your gas and electricity meter.
It’s important that you are aware of whether or not your energy provider will apply the discount to both your gas and electricity prepayment meters.
The discount will be automatic and made up of six instalments, starting from October.
Customers will get a discount worth £66 in October and November.
A £67 discount will then be provided every month between December and March 2023.
Those on credit or smart prepayment meters will not need to do anything to receive the discount.
Energy firms will automatically apply the discount for these customers – whether that’s through their bills or directly on to their smart prepayment meters.
However, those on older, traditional prepayment meters will not be able to receive the discount directly.
These customers will need to collect and redeem a discount voucher to take advantage of the £400 energy discount.
How will my smart prepayment meter be credited?
If you’re on a smart prepayment meter, the discount will be credited directly to your meter in the first week of each month of delivery – you won’t need to do anything.
Only E.ON and E.ON Next, Octopus Energy and Shell Energy plan on crediting their customers gas AND electricity smart prepayment meters.
Although Bulb and EDF Energy plan to credit the discount to electricity meters, customers can contact the firm and request that the discount is applied on to their gas meter.
British Gas, Ovo Energy (and SSE), Scottish Power, So Energy and Utility Warehouse will credit the £400 energy bill discount to their customer’s electricity meters.
How will my traditional prepayment meter be credited?
If you’re on a traditional prepayment meter, you’ll be given a redeemable energy bill discount voucher or special action message (SAMs) in the first week of each month, issued via SMS text, email or post.
Customers will then need to redeem these at their usual top-up point.
Customers of Bulb, E.ON and E.ON Next, EDF, Octopus, Ovo (and SSE), Scottish Power, Shell Energy, Utilita and Utility Warehouse can choose for their voucher to be redeemed on either their gas or electricity meter.
However, British Gas customers will only be able to redeem their voucher onto their electricity meters.
What if I have separate gas and electricity suppliers?
If you have a gas prepayment meter and a standard credit electricity meter or vice versa, only one of your energy suppliers will provide the £400 energy bills discount.
Your electricity supplier will be the one to pay you the discount and if you are on a standard electricity meter and pay by direct debit, we have listed how you’ll receive the £400.
What other energy bill help is coming?
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.