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£150 Warm Home discount went to previous energy company, best way to deal ?
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Ah, so the stuff about reconciliation really did go over my head when I was reading the Ofgem guidance.Newcad said:Spoonie_Turtle said:I don't know how it works, but this was my thinking:
The WHD money is allocated to suppliers based on customers who were with them and eligible on the qualifying date.
(Where is that money, did they receive it before going bust or did Ofgem/DESNZ hold off since the writing was on the wall?)You are making an incorrect assumption there.
Don't worry too much, you are not alone and many/most make the same incorrect assumption.
(Probably because the government likes to try and look good in the media).People tend to assume that the WHD is a 'pot of money' given to the energy supplier by the government, - but it doesn't work like that at all.The government only tell the suppliers who qualifies for a WHD.The WHD is funded by the energy suppliers themselves, from what they charge all of their customers.All of us pay around £13 a year extra on our electricity bill to pay for the WHD.See paragraph 1.6 of this: government Briefing Paper from 2016:
https://researchbriefings.files.parliament.uk/documents/SN05956/SN05956.pdf1.6 How is it funded?
The funding comes from participating energy suppliers and it is assumed
they then pass these costs on to all consumers through their energy
bills.
I understand now, they get an instruction and are obliged to 'spend' that money on rebates/credits for eligible customers.
So then the question is, who will DESNZ instruct to pay customers who were with Tomato on the qualifying date?0
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