Eon, British Gas and Octopus among energy companies helping customers with rising bills | Personal Finance | Finance
The energy price cap is set to rise again in a matter of weeks, pushing bills up for households on variable tariffs. However, suppliers are offering hundreds – or even thousands of pounds worth of support to help struggling customers with debt.
Ofgem, the energy regulator, has confirmed the price cap will rise by a further 1.2% on January 1, bringing average annual bills for a typical duel-fuel household to £1,738, up from £1,717.
The increase will only impact households on variable tariffs – not those who have fixed rate tariffs.
While the increase may be daunting, energy suppliers, from British Gas and E.ON Next to Octopus, have pledged a helping hand to those who need it.
Some are even offering to wipe energy debts, or at least put money towards helping people clear it. Here’s a list of support five energy suppliers have on offer this winter.
British Gas
British Gas’s You Pay We Pay scheme pledges to match 100% of energy payments made by customers who are most in need of help.
The £15million scheme, which launched in June, matches customers’ repayments for six months up to £100 a month.
For example, a customer paying £100 a month will pay £600 over six months and British Gas will pay an additional £600 credit on their account, which may also help towards clearing an outstanding balance owed.
Tens of thousands of customers that are eligible will be contacted, customers do not need to apply.
The supplier is also offering two grants to help customers clear up to £2,000 worth of energy debt. The Individual and Families Fund is available to both British Gas and non-British Gas customers, while the British Gas Energy Support Fund is available to the firms’ customers only. People can read more and apply for the schemes here.
Octopus Energy
Octopus Energy’s £30million Octo Assist Fund provides financial support to customers in need, offering grants to help with energy bills or debt relief.
Support is tailored to individual circumstances, meaning the amount awarded varies based on the customer’s situation.
The fund also offers additional resources, such as free electric blankets and heat loss cameras to identify draught-prone areas. People can find out more about how to apply here.
E.ON Next
E.ON Next is offering up to £92million worth of support to struggling customers this year, including £60million through its Winter Support Scheme.
Customers who qualify are being contacted directly and may initially be provided with £250 towards their winter energy bills, with further support discussed with customers on a case-by-case basis.
The aim of the scheme is not only to help customers to afford their energy bills this winter, but to give people “a fresh start” by cancelling any debt and setting them on a path to afford their energy bills going forward. According to the supplier, as many as 60,000 people qualify and are being contacted directly.
For those in need of further support, the E.ON Next Energy Fund is also available, which supplies additional debt support and energy efficient appliances, such as cookers, fridges and washing machines, to replace old or broken models.
Scottish Power
Scottish Power offers support to customers through its Hardship Fund, which helps by clearing or reducing arrears through credits applied directly to their energy accounts.
People could qualify for help if they meet the terms and conditions and are receiving one of the following benefits:
- Income related Employment and Support Allowance
- Income based Jobseeker’s Allowance
- Income Support
- Housing Benefit
- Universal Credit
- Child Tax Credits
- Working Tax Credits
- Pension Credit Savings Credit (PCSC)
People could also qualify if they have a low household income, or if there are special circumstances which could make them eligible. For example, if they have experienced an income reduction due to illness.
Customers can apply by contacting a recognised debt charity, such as StepChange. People can find out more about this here.
Utility Warehouse
Utility Warehouse’s Customer Support Scheme and Hardship Fund offer debt write-offs of up to £1,000 or £2,000, depending on individual circumstances.
Eligibility for additional support is determined by advisers at Citizens Advice Plymouth.
