Govt £400 energy subsidy

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  • JoeSoap's Avatar
    Level 91
    We'll be banging saucepans for them next Thursday then?

    Haha... love it 🤣
    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • Andy65's Avatar
    Level 43
    My dd is due on the 1st of the month. As it was a weekend it actually was collected on Mon the 3rd thankfully less £67 . As yet the credit to my account of the same amount hasn't materialised. As normal though my online account is saying the payment has not yet been applied. Am I being over optimistic to expect that the £67 credit will appear at the same time the payment is actually applied?

    I'm in the same position as you @Gaseous with my DD also normally paid on the 1st. In addition my DD is less than £66 so they should be crediting the difference back to my bank account, which hasn't happened either, although Section 5.29 suggests they can just credit the full £66/67 to the energy account.

    The Government Guidance (link kindly provided @JoeSoap) states "For all Direct Debit customers, the date the EBSS payment is provided should be in line with the customer’s established Direct Debit collection schedule.". So if your DD is normally paid on the 1st, the £66/67 credit should be applied to your energy account on that day.

    I'm awaiting a response from eon-next as to when they are going to apply the credit to my energy account.
  • Beck's Avatar
    Level 1
    @Andy65
    This is what I am trying to figure out in a way too.

    My dd has passed but they haven't taken anything. So I'm assuming the subsidy was applied to my dd. I've got my bill as usual for the 42 ish quid I pay usually and informing me of the price increase next month, but no mention of the subsidy at all.

    Am I supposed to be subsidised either the 66 or the lower value of my bill? Should the left over 24 ish quid be credited on my bill? Or does EON just pocket it for themselves?
  • Andy65's Avatar
    Level 43
    @Andy65
    This is what I am trying to figure out in a way too.

    My dd has passed but they haven't taken anything. So I'm assuming the subsidy was applied to my dd. I've got my bill as usual for the 42 ish quid I pay usually and informing me of the price increase next month, but no mention of the subsidy at all.

    Am I supposed to be subsidised either the 66 or the lower value of my bill? Should the left over 24 ish quid be credited on my bill? Or does EON just pocket it for themselves?

    Hi @Beck

    My original understanding, I think I read this on the BBC website weeks ago, was that if your DD was less than £66, your energy account was credited with an amount equal to your DD and the remainder, £24 in your case, was credited back to your bank account.

    However, Section 5.29 of the Government Guidelines states:

    "Where a refund or reduction of the full value of the EBSS payment is not possible because the EBSS payment is greater than the amount of the customer’s Direct Debit, a credit should be made to the energy account of an amount equal to the balance between the EBSS payment and the amount reduced or refunded. This could include putting the customer on payment holiday (by reducing the Direct Debit to £0) and crediting the account by the balance of the EBSS amount."

    This suggests that they could credit your energy account with the full £66.

    Also, Section 5.32 says:

    "For all Direct Debit customers, the date the EBSS payment is provided should be in line with the customer’s established Direct Debit collection schedule."

    My DD normally gets actioned on the 1st of the month but my eon-next account shows no sign of the £66, or part of, yet. I'm asking questions about it and one reply I've had 'suggests' that I'll see the £66 credit on my next bill. I've asked for clarification because if that's the case they are going to get swamped by customers asking where their £66 is.

  • Tommysgirl's Avatar
    Guest
    @Andy65
    Same here. My variable DD has been taken at the full amount on 3/10/22 and no mention of the £66. I rang them yesterday after no response to my email of 3/10/22, and they said pretty much the same: that accounts are still being updated and I'll probably see the credit on my next bill. An online statement providing clarification would be very welcome, and stop all this unnecessary confusion.
  • sc489's Avatar
    Level 8
    They are such a mess over DDs I'm going to cancel mine for 6 months since the credit of £67 is more than my electricity bill
  • Andy65's Avatar
    Level 43
    They've known about the £400 payment for long enough @Tommysgirl so there's no excuse really, and as you say a bit of communication and explanation would have gone a long way.
  • JoeSoap's Avatar
    Level 91
    They are such a mess over DDs I'm going to cancel mine for 6 months since the credit of £67 is more than my electricity bill
    Why cancel your DD? It means you will pay a higher tariff rate. If your DD is less than £67 then you will be paying nothing anyway. Anything between your DD amount and the £67 will be credited to your account.

    Edit... my apologies, I see you have posted earlier in the thread. I think your DD was £60 then reduced to zero by the EBSS of £67 and then increased to £40.

    Could the increase be due to a rise in your tariff rates on 1st October?

    It goes without saying that you are at liberty to cancel your DD but with a bit more digging into your tariff and estimated usage you may be able to successfully negotiate your DD downwards instead of cancelling it and thereby keep your DD discount.
    Last edited by JoeSoap; 05-10-22 at 19:13. Reason: Added a bit.
  • Anasa_EONNext's Avatar
    Community Manager
    @darkgen Hi Anasa here 👋 Just a quick one, the subsidy amount will be added to your account in line with the date your Direct Debit is due to be taken as mentioned above and within the first week of each month for prepayment there is no question about applying this it will automatically be added from the government to your account, it may take a few days for it to show in your payment history but I can assure you that the money will be applied accordingly and you may notice the Direct Debit reduction before its updated in your payment history, we have all known about this for months but we're only getting the payments from the government now and ensuring they are all added in line with payments 🙂
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  • Gaseous's Avatar
    Level 5
    @darkgen Hi Anasa here 👋 Just a quick one, the subsidy amount will be added to your account in line with the date your Direct Debit is due to be taken as mentioned above and within the first week of each month for prepayment there is no question about applying this it will automatically be added from the government to your account, it may take a few days for it to show in your payment history but I can assure you that the money will be applied accordingly and you may notice the Direct Debit reduction before its updated in your payment history, we have all known about this for months but we're only getting the payments from the government now and ensuring they are all added in line with payments 🙂
    My dd was taken from my bank 3oct Monday,correctly reduced, as normal still showing as not applied on my account. But no £67 credit as yet . So when applied it will also show this credit ?
    Last edited by Gaseous; 05-10-22 at 20:12. Reason: Correction