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Posted: 18/10/2022

Government Alternative Fuel Payments Update

Government Alternative Fuel Payments Update

There has been a lot of talk in recent weeks about the government payment of £100 for those living in off-the-gas grid homes. We now have more clarity over how this will work, however as yet we do not know exactly when the payments will be made.

 

How do I get my £100 heating oil payment?

In a nutshell, the £100 heating oil payment will be provided to off the gas grid homes in a similar fashion to the wider Energy Bills Support Scheme. It has been confirmed that the payment will be provided directly to you via your electricity provider. 

The government shared this quote:

“This scheme is intended to deliver a one-off payment of £100 to UK households who are not on the mains gas grid and therefore use alternative fuels, such as heating oil, to heat their homes. Powers will enable the government to deliver support via electricity bills in both GB and NI, under a similar delivery model to the Energy Bills Support Scheme. The payment will ensure that a typical customer using heating oil does not face a higher rate of growth in their heating costs since last winter, in comparison to those using mains gas, who are supported by the Energy Price Guarantee. The government will set out the timing of this payment soon.”

The Energy Price Bill Document (11/10/22)

You can find the full government document of The Energy Price Bill here.

UKIFDA, the trade body for the liquid fuel distribution industry, followed the government statement on heating oil up with its own announcement:

UKIFDA, notes the government’s announcement this morning confirming that the £100 fixed payment to heating oil users will be made via electricity companies.

Through multiple discussions with the government, it became clear that because of the highly competitive nature of the heating oil market, where customers hold multiple accounts across different distributors and outlets, a quick method of payment through these accounts without duplication was not possible.

We will continue to offer assistance to the government in the design of the payment system through electricity companies. This will take time, and customers should await further details from the government.

We also note that eligible customers that do not have a relationship with an electricity supplier will be supported through an alternative route to make sure they do not miss out. Details of this alternative route will be confirmed by the government shortly.

As before, we recommend that customers do not wait if they need heating oil. As we head into winter, many oil heating customers will know that the best and most economical approach is to talk to their local distributors on a regular basis and not leave purchases to the last minute.”

UKIFDA (12/10/22)

 

How will the £100 be paid to me?

As with the wider Energy Bills Support Scheme model, we’ve highlighted the ways in which you are likely to receive the funds. This is based on how you currently pay for your electricity; all methods will be automatic and you do not need to register.

Payment Methods 

Direct debit

The £100 will automatically be credited into the account you use to pay for your energy.

Credit or payment card

If you usually use a credit or a payment card to pay for your electricity, then the £100 payment will be added as credit.

Smart prepayment meter

The £100 heating oil payment will be credited to your smart prepayment meter.

Traditional prepayment meter

Based on The Energy Bills Support Scheme model for gas homes, a voucher or automatic credit will be applied when the household completes its top-up. However, the government has not yet clarified the process for those using a traditional prepayment meter for off-the-gas grid homes.

 

When do I get my £100 heating oil payment?

As suggested earlier we do not know when the payments will be made but we would like to warn all our customers that scammers are already trying to swindle customers out of these payments.

 

Stay safe from scammers

Please be aware that scammers are trying to cash in on the Governments £400 energy bill support and the £100 heating oil payment. Watch out for fake text messages and e-mails that claim to be from the Government, inviting you to apply for the energy bill support.

These are a scam – the money will be paid to you automatically via your electricity supplier. You do not need to apply, and you definitely do not need to share your bank or credit card details.

The government will not ask for this level of information via text. Any government energy support funds will be applied automatically.

Here's an example of the scam text:



Here's how you can report a wide variety of scams quickly

The National Cyber Security Centre (NCSC) sets out a number of different ways to report scams depending on the type:

  • Emailed scams. If you get a dodgy looking email, you can report it to the NCSC by forwarding it to [email protected]. Remember not to click on any links within these emails.

  • Text scams. If you get a suspicious text message, you can forward it to the number 7726 – this will allow your provider to track the origin of the text and arrange to block or ban the sender if it's a scam. You can also report scam text messages to [email protected] – remember to provide a screenshot of the text message.