A reminder of the Energy Bills Support Scheme and calls to look again at the support on offer from the Committee on Fuel Poverty (CFP).

Ahead of Ofgem’s price cap announcement expected tomorrow, the Committee on Fuel Poverty (CFP), which advises the Government on measures to target fuel poverty has written to the Department for Business, Energy and Industrial Strategy – BEIS – making three recommendations: to have a winter fuel plan and monitor it, ensure cash support reaches people in good time and take every step to prevent people from turning off their heating this winter.

They point out that the wholesale price surge has increased generator’s profits beyond all expectations and urge the Government to consider what additional market reform measures may be needed now to help struggling households to pay their bills. The CFP point out that the Energy Bills Support Scheme (EBSS) – announced in Feb and later modified – was put in place when the price cap was expected to be £2,800. The October cap is expected to be over £3,500, adding to the pressure to consider further measures.

The EBSS was originally intended to provide support by giving £200 credit to help with energy bills in October 2022 for domestic electricity customers in Great Britain. Energy suppliers were to apply the grant payment to customers’ accounts, with the government recovering the grant via a levy from April 2023, through network charges on customer bills over a 5-year period. The scheme was later amended to mean all UK households would receive a grant reducing energy bills by £400, with no requirement to repay. The £400 will be applied in monthly instalments over six months, with a reduction of £66 in October and November, and of £67 a month from December to March 2023. The discount will be made automatically by your energy supplier, with no need to apply.