Are many missing the point of the £400

basketcase

According to Shell Energy:

"The EBSS means that all UK households will receive £400 towards their electricity bills. You’ll see this as a monthly discount on your energy"[either £66 or £67].

Does this not mean that no money's actually received to spend on anything, it's just knocked off your bill?  Presumably, if you up the DD to the amount they suggest, you'll build up credit because (I understand) their estimate of the new DD payment doesn't include this.  Am I missing something?

MattMattMattUK

basketcase said:

According to Shell Energy:

"The EBSS means that all UK households will receive £400 towards their electricity bills. You’ll see this as a monthly discount on your energy"[either £66 or £67].

Does this not mean that no money's actually received to spend on anything, it's just knocked off your bill?

What do you mean by "to spend on anything"? Direct debits are either reduced, or a credit will be applied after the Direct Debit has been taken, but no you will not receive it in cash, or M&S vouchers. 

basketcase said:

Presumably, if you up the DD to the amount they suggest, you'll build up credit because (I understand) their estimate of the new DD payment doesn't include this.  Am I missing something?

Direct Debit payments will be adjusted to account for annualised usage, the issue at the moment is the multiple government changes that have been shoved out at short notice and the energy companies trying to have to implement them all before the start of October. In theory in this instance if someone's monthly payment was set at £200 pcm, they would receive £200 on their energy account, but only £134 would be deducted from their bank account.

[Deleted User]

In all of this debate about the £400, it is worth bearing in mind 2 key facts: one, energy prices are rising on the 1st October and, two, the £400 is part of the Government’s support package. As explained in the Blog below, energy prices are rising by 27% next month (individual consumer annual percentage cost increases may be less or more depending on actual usage):

https://www.moneysavingexpert.com/utilities/energy-price-guarantee/

Moreover, with summer usage so low, we have yet to see the real effect of the hurt from the price rise last April. The temptation will be to spend the rebated DD amount. Sensible people should act like squirrels and put the money somewhere safe to pay for future energy costs: if not this Winter, then next

GunJack

BobT36 said:

GunJack said:

I'll be aiming to have a large credit on my elec/gas account by the end of the 6 months to be carried over to when the cap ends, and will aim to keep it there in case of price armageddon!!!! lol

But why? Why give private companies with millionaire CEOs running them your extra money you don't owe at that time? They're not charities. 

Your money is better in your bank than theirs. Stick it in a savings account till it's needed. 

As others have also noted, I think we're going to be in for a major price shock come the end of the current support package, and I always run my utilities in credit anyway - it helps smooth the expected volatility... 

GunJack

[Deleted User] said:

. Sensible people should act like squirrels and put the money somewhere safe to pay for future energy costs: if not this Winter, then next

That is such a good way of putting it

..and to go along with my previous post, if it's in your energy account, it's still protected under SoLR. As & when that changes, then I'll move it somewhere else I see fit.

pfpf

i'll be leaving my DD as low as possible already being £600 in credit but putting away in a "bills" account the shortfall. the £66/67 will go in to said account with the CT rebate. no WHD this year though for us having qualified through income previously (i expect).

Merlin139

I have been told by Octopus that my DD will be reduced by £66/67 over the next 6 months. I personally think that it should just be a credit on my account. Having both Gas and Electricity with them it can be used to cover the increased cost of my Energy.

I am able to squirrel it away for when its needed and will only use it for Energy.
 
Summer of 2020 my annual usage worked out at about £54 per month.
Summer of 2021 same usage worked out at £62 per month.
Now its more like £150 per month from October.

Was not entitled to the Council Tax £150 in April.

Sea_Shell

Squirrelling I can do!! 😉

philipbin

For people who pay by Direct debit
British Gas, EDF Energy, Ovo Energy, Scottish Power and SSE will credit the amount automatically to your bank account.
Bulb, E.on/E.on Next, Octopus Energy, Shell Energy, So Energy and Utility Warehouse the direct debit will be reduced automatically.

For people who pay by Standard credit
All suppliers will credit the amount to your energy account.

For people who pay via Smart prepayment meter
British Gas, So Energy, Utility Warehouse, Ovo Energy, Scottish Power and SSE will credit the amount to your electric account.
Bulb, EDF Energy will credit the amount to your electric account, you will be able to switch it to your gas account.
E.on/E.on Next, Octopus Energy and Shell Energy will Credit the amount to your gas and electricity accounts (split evenly).

For people who pay by Traditional prepayment meter
So Energy N/A
All other suppliers - voucher/s sent (via text, email or post) to be used on electricity when you’re topping up as normal – make sure supplier has up to date contact info

https://www.moneysavingexpert.com/news/2022/08/how-energy-suppliers-will-pay-the-p400-cost-of-living-support-pa/

Mstty

Never steal another person's nuts!!!!