Confusion over how householders get their £400 energy bill rebate hits Milton Keynes

As the government’s Energy Bill Support Scheme begins this week, many customers are confused about how and when they will receive their £400 rebate.

According to Gov.UK, all households will see the first £66 instalment of the rebate in their October electricity bill, and the discount will then be automatically applied monthly in six instalments up until March 2023.

But one EDF customer in Milton Keynes claims he was told differently when he contacted his supplier.

He said: “When I queried my direct debit of £278.00 a month with EDF, I asked if this included the discount from the government.

"I was told it did not, and that they would keep the money each month and then assess my account in March. Shouldn’t the money should be paid to their customers and not to them?”

The customer said EDF then agreed to reduce his monthly to £212.00, but when he checked his bank account he discovered they took the full £278.00.“When I queried this with them I was told it was too short a period of time to amend the direct debit….They now say it will take three to five working days to pay it back to my account.“I told them I was not happy with this and that I needed the money back immediately.”

A spokesman for EDF said 14 days’ notice was required to change a direct debit.

He said: “All of our 3.3 million customers will start to receive £400 off their energy bills made over six instalments, starting in October as part of the government’s Energy Bills Support Scheme.

"Households will see a discount of £66 applied to their bills for October and November, rising to £67 a month from December through to March 2023. All discounts will be non-repayable regardless of payment methods or personal situations. This discount also applies to tenants renting properties where fixed energy costs are included in their rental charges.”

“For our customers on a fixed monthly direct debit, they will receive a refund directly into their bank account shortly after the day they make their regular monthly payment to EDF.

When changing direct debit amounts we require 14 days’ notice, as per the direct debit Guarantee, for those changes to take effect. If we receive less than 14 days’ notice we would take one last payment out at the previously agreed figure and all payments after that would be set at the new agreed amount.”

The Citizen looked at how the rebate scheme will work for different energy suppliers. You can check your supplier in our list below.

BRITISH GAS

British Gas, the country’s biggest energy supplier, is asking customers who pay by direct debit to pay as normal. Customers will then receive the discount as payments directly into their bank account over the course of six months.

BULB

Bulb customers will see their direct debit amounts reduced over the next six months in order to apply the £400 discount.

EDF

EDF customers who pay by direct debit should continue to pay as normal and will then see monthly payments made directly to their bank account. Customers who don’t pay by direct debit will see the rebate paid automatically into their energy account in the first week of every month.

SSE and OVO ENERGY

SSE and Ovo Energy will pay the £400 discount into customers’ bank accounts in monthly instalments. The payments will be made immediately after a direct debit payment is taken. Those on prepayment meters will see the discounts credited to their meter.

SCOTTISH POWER

Bills for Scottish Power customers will not change over the next six months, but payments will be made directly into customers’ bank accounts following payments.

E.ON and E.ON NEXT

Eon customers who pay by direct debit that are on a fixed energy tariff will see the £400 deducted from their monthly payments.

If their bill comes to less than £66 or £67 a month, the bills will be reduced to £0 and money will be added to their account as credit.

Customers on variable tariffs will see the rebate added as credit at the end of each month.

UTILITA

The six payments will be added to customers’ Utilita account as credit over the next six months, meaning their bills will be reduced.

Customers on smart prepayment meters will be credited automatically, while those on traditional prepayment meters will receive the payments as vouchers.

SHELL ENERGY

Direct debit customers will see the energy rebate deducted from their bills each month before their direct debit is taken.

Those who don’t pay by direct debit will also see their bills reduced each month, while smart prepayment customers will receive the money credited to their meter.

UTILITY WAREHOUSE

Utility Warehouse will pay the energy rebate to their customers in the same way as Shell Energy.

Direct debits bills will be adjusted each month prior to payment being taken, so that bills will be reduced by £66 or £67 each month.

People have been urged to stay alert for scams that could arise from the rebate scheme. The support will reach people automatically and there is no need to apply.

Meanwhile, there is more confusion over the £2,500 ‘energy cap’ under Government’s Energy Price Guarantee scheme, which also began this week to limit the price people pay per unit of gas and electricity used.

Money Expert Martin Lewis warned on Twitter: “There is no £2,500 cap on energy bills”.

Instead the new guarantee - like the old caps - limits the daily charge and unit rates.

“So use more, pay more, £2,500 is just what someone with average use pay,” he wrote.