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 Yesterday saw the introduction of the Energy Prices Bill to support the delivery of the government's wide-ranging package of support to help with energy bills this winter.
Given the specifics of the heat networks sector, we thought it would be helpful to set out the key facts on how heat network customers will receive this support. We will continue to provide more detail on how these measures will work in due course.
£100 credit specifically for domestic heat network customers
- Households on heat networks will receive a one-off £100 payment.
- If customers receive heat from a heat network and they have a domestic electricity tariff, they do not need to apply for this £100 credit, it will automatically be added to their bill.
- If they do not have a domestic electricity tariff, they will need to apply for this £100 payment. We will release details on how this will work soon.
£400 credit via the Energy Bills Support Scheme
- All domestic households will receive the £400 Energy Bills Support Scheme. If customers have a domestic electricity tariff, they will not need to apply for this credit and there’s no need for them to contact their energy supplier.
- If they do not have a domestic electricity tariff they will still receive this benefit. We will also announce further details on this shortly.
Heating and hot water bill support via the Energy Bill Relief Scheme
- Heat network customers will receive support for their heating and hot water bills via the Energy Bill Relief Scheme, which will run for an initial period of 6 months.
- However, the government recognises that this support should be provided over the same period of time that other domestic consumers will be supported for.
- We are working to develop the appropriate mechanism to implement this commitment after this comes to an end in March. Further details will be announced in due course.
- Heat suppliers benefiting from the scheme will be required to write to their customers setting out how the discount will be used to reduce their bill.
- If customers do not receive an update or bill savings from their heat supplier, they will be able to contact the Energy Ombudsman to investigate their complaint.
- We will release more information on the role of the Energy Ombudsman and what is expected from heat suppliers in due course.
Capped electricity prices via the Energy Price Guarantee
- If customers have a domestic electricity tariff they will benefit from this cap which limits the unit cost of electricity to 34.0p/kWh. This cap applies to usage from the 1st October 2022.
- If they do not have a direct relationship with a domestic electricity supplier, for example if they are on a ‘private wire’ connection or pay for their electricity via a service charge, the government will ensure that they receive equivalent support. We will release details on how this will work soon.
All the best
John Saunders
Heat Networks Programme Director
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