How can I opt out of the £200 energy scheme?

MWT

Astria said:

Swipe said:

What happens for me as I'm on a fixed tariff until April 23? Will I not get it and then have to start paying it back via an inflated SC when my fix ends?

You'll get the £200 in October like everyone else.

You'll start paying it back when your fixed tariff ends, and will finish paying it back at the same time as everyone else.

So in effect you'll pay back slightly less.

More likely the charge will be added in the same time-frame as everyone else, most suppliers have a version of this in the T&Cs:

7.6 and 7.6.4 would cover it...

AnnoyedEnergyUser

swaledale_one said:

PennineAcute said:

All these people who are so against this £200 have yet to come up with a more realistic alternative.  Some people can cause an arguement in an empty room.

Give your head a wobble.

Realistic alternative to what? A discount that's not actually a discount!?

How is giving every household in the UK a £200 forced loan anyway shape or form any help whats so ever? Please explain.

There is zero need to put people into debt in a time when most folk are already heavily in debt.

You cannot solve financial issues by taking on more debt.

People are angry as they have every right to be and to voice their opinions in an open forum.

Hear bloody hear

swaledale_one

GingerTim said:

swaledale_one said:

QrizB said:

From what's been said, my best guess based on this Treasury factsheet and pending any more specific info:

• Every domestic electricity account will be credited with £200 in October this year;
• Every domestic electricity account will see an ~11p/day increase to the standing charge from some-time-in-2023.
  

So when Linda moves out of her parents house in November 2022 come April 2023 her standing charge will increase to pay back £200 loan she never received?

If Ian receives the £200 in October on his bill then moves away in November and Frank moves in will Frank have to pay for Ian's £200?

Will this be on a person's credit file? If so how will it when you've not asked for the credit?

If its not then there is no legal standing to chase.

Linda will for five years pay an extra 11p per day on her electricity standing charge, just like everyone else.

Frank will for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

You will for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

QrizB will for five years pay an extra 11p per day on their electricity standing charge, just like everyone else.

I will pay for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

Credit files don't come into it anywhere. No one says it's fair, but it is very simple: for five years everyone will pay an extra 11p per day on their electricity standing charge.

How will Linda pay more on her standing charges? when the electric won't be in her name ever again.

Frank can't legally be forced to pay back someone else's debt as he never received £200 as he has never had a gas or electric account.

GingerTim

Here's Martin Lewis's explainer:

https://www.moneysavingexpert.com/news/2022/02/martin-lewis--how-the-flat-rate-p200-energy-bill-loan-really-wor

"I know there is a lot of confusion about the £200 bill credit loan on energy that's due to start in October and much misunderstanding about it. So I want to talk you through in practice how it will work.

"What will happen is this - in October, on every single electricity bill in England, Scotland and Wales, you will either have your bill reduced by £200, or you'll be given a bill credit. If you're on prepay, they'll pay it through your smart meter or they'll give you a voucher or a cheque.

"This is going to happen. There is no choice about it. It is not optional and it is going to happen automatically on every single bill. Then from the following April, and for five years after that, you will then have your bill automatically - without choice - increased by £40 a year. That is how it will work.

"The best way to think of it is as a form of energy bill levy. We already have levies on energy bills, we all pay a part of our bill which goes towards green infrastructure, whether you have green energy or not. A part of our bill goes towards funding the cost of moving customers whose firm has gone bust to a supplier of last resort. That is a levy added to our bill.

"So what's going to happen here, is in October, we'll have rather strangely a negative levy. They will take £200 off bills. And then each April after that, they will add a £40 levy back on them for five years to recoup the cost.

"There is no personal loan to an individual. This isn't about, you borrowed money, you pay it back. So if you're living at home with parents and you move out in two years' time, even though you didn't get the £200, your bill will still be £40 higher - every household will be charged £40 more. You'll simply get your energy bill and it will be higher because of this levy and the one this October will be lower.

"There's no sort of loan account to an individual or even to a household. It's more a negative levy than a positive levy. Hope that clears it up."

Money_Mad

It is not really a debt, so why would you want to opt out. Even if you did opt out you would still be paying the £40 extra a year for 5 years

MWT

swaledale_one said:

Frank can't legally be forced to pay back someone else's debt as he never received £200 as he has never had a gas or electric account.

He isn't paying back anyone's debt as there is no debt, he will just be paying a statutory levy in the same was as other similar amounts are charged to cover the WHD for example...

GingerTim

swaledale_one said:

GingerTim said:

swaledale_one said:

QrizB said:

From what's been said, my best guess based on this Treasury factsheet and pending any more specific info:

• Every domestic electricity account will be credited with £200 in October this year;
• Every domestic electricity account will see an ~11p/day increase to the standing charge from some-time-in-2023.
  

So when Linda moves out of her parents house in November 2022 come April 2023 her standing charge will increase to pay back £200 loan she never received?

If Ian receives the £200 in October on his bill then moves away in November and Frank moves in will Frank have to pay for Ian's £200?

Will this be on a person's credit file? If so how will it when you've not asked for the credit?

If its not then there is no legal standing to chase.

Linda will for five years pay an extra 11p per day on her electricity standing charge, just like everyone else.

Frank will for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

You will for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

QrizB will for five years pay an extra 11p per day on their electricity standing charge, just like everyone else.

I will pay for five years pay an extra 11p per day on his electricity standing charge, just like everyone else.

Credit files don't come into it anywhere. No one says it's fair, but it is very simple: for five years everyone will pay an extra 11p per day on their electricity standing charge.

How will Linda pay more on her standing charges? when the electric won't be in her name ever again.

Frank can't legally be forced to pay back someone else's debt as he never received £200 as he has never had a gas or electric account.

Wherever Linda moves into, she will find her standing charge to be 11p more expensive than it would have been had the £200 not been dished out.

Wherever Frank moves into, he will find his standing charge to be 11p more expensive than it would have been had the £200 not been dished out.

Everyone, wherever they live in the UK, will find their standing charge to be 11p more expensive than it would have been had the £200 not been dished out.

As Martin explains in the link I posted, it's not a personal loan but a universal levy. Like I said, no one said it's fair to those may or may not have benefited from the £200, but it's not hard to understand how it will work.

swaledale_one

MWT said:

swaledale_one said:

Frank can't legally be forced to pay back someone else's debt as he never received £200 as he has never had a gas or electric account.

He isn't paying back anyone's debt as there is no debt, he will just be paying a statutory levy in the same was as other similar amounts are charged to cover the WHD for example...

There is of course a debt, the government is giving the loan directly to energy sector to then issue out and claw back.

edwink

Our electric bill is around £20 a month (we are extremely low users and also have solar panels) and we don't use any gas (we use Biomass).  So as our yearly electric bill is £240 I find it barmy that we are to be given a £200 credit. I am guessing that if they got customers to apply for the £200 loan the admin side of it all would cost thousands if not millions. 

They have also said over the years that energy companies should not hold on to their customer's money and should refund any overpayments (We are with Eon and they review our payments yearly) so how will this still work especially for very low users like us?.  A £200 credit to our account is ridiculous. 

I'm another who doesn't want the £200 but it looks as though we won't get a choice. 

Edwink 

GingerTim

edwink said:

Our electric bill is around £20 a month (we are extremely low users and also have solar panels) and we don't use any gas (we use Biomass).  So as our yearly electric bill is £240 per year I find it barmy that we are to be given a £200 credit. I am guessing that if they got customers to apply for the £200 loan the admin side of it all would cost thousands if not millions. 

They have also said over the years that energy companies should not hold on to their customer's money and should refund any overpayments (We are with Eon and they review our payments yearly) so how will this still work especially for very low users like us?.  A £200 credit to our account is ridiculous. 

I'm another who doesn't want the £200 but it looks as though we won't get a choice. 

Edwink 

I know what you mean - this year I am going to make a profit on my electricity bill. I'll pay about £300, receive the £200 credit, and get a £220 cashback payment from EDF for switching last July. Madness!