The £400 Energy Grant

[pastafreak]

And how it will be paid. This just came up in an article in my news feed...

// ... all households will get £400 off their electricity bills from October as a non-repayable grant. But you won’t get the £400 credited to your account in one go. It will happen over the course of six months from October to March.

So if you pay by monthly direct debit you might get £66.67 off your bill per month. It’s a direct discount off your bills, not cash you can spend. That means you will likely find your monthly bills are still higher than they were at the same time last year.

Customers with pre-payment meters will have the money applied to their meter or via a voucher. The mechanism for each firm isn’t confirmed yet. This applies throughout Britain but not Northern Ireland, where the administration has been told to devise its own scheme. //

[goodgoalie]

I wonder if the energy suppliers will decrease our monthly direct debits, or if this money will just slosh around in our accounts as the Warm Home Discount does.
Bring back quarterly direct debits, I say - then you could affect what you pay by using less, and clear your account each quarter.

[davebro]

I don't know why folks keep saying you won't get the cash! You will get (keep) the cash by not having to hand it over the fuel company.

[barry1010]

If you use less you pay less regardless of how you pay your bill.

[youngmafbog]

The monthly DD's are calculated on your usage * the rate per unit so yes, providing it doesnt go up again they will reduce it (Cant you do that anyway, I can with Ovo).

As for quarterly bills thats fine for summer months but come winter many would struggle having not saved up in the summer. Once again Ovo pay me interest so whats the problem?

[ToraToraTora]

it will be added in to your balance, then when they do the recalculation which is basically (last years usage + projected increase - current balance / 12? that will in effect give a monthly reduction.