Energy Bills Support Scheme (EBSS): The Ultimate Guide
Households have been getting a one-off payment of £600 under the government’s cost of living support package. They will receive this from their electricity supplier. Those on prepayment meters will get it added to their active balance, and smart prepayment customers will automatically apply it to their accounts. This scheme ends this month.
If you would like to read more information or learn more about the pricing of business energy, you can do so here .
What is the EBSS?
The EBSS is a discount on energy bills of up to £400 for households. Most households will receive it automatically from their energy supplier in six payments between October 2022 and March 2023. The government will verify each household’s eligibility using information shared with them by their local authority. This will include council tax records, details of income and benefits, address and postcode. Domestic electricity suppliers must share this information with the Department for Business, Energy and Industrial Strategy (BEIS) before receiving funding from the EBSS alternative fund.
This will be paid into a ring-fenced account, which can only be used to pay EBSS payments. PwC guidance (FAQ 7.46.7), which applies to contracts with customers, suggests that amounts received from BEIS should be recorded as cash receipts and, where applicable, payments to customers in the cash flow statement.
However, recording such amounts as credit entries in the balance sheet (impacting cash, receivables and contract assets or liabilities) would also be appropriate.
Who is Eligible?
The EBSS is available to all households with a domestic electricity connection. This includes those on prepayment meters. Local authorities deliver the scheme, but the Department for Business, Energy and Industrial Strategy is responsible for determining eligibility and processing claims. Unlike the £150 energy rebate, this will be managed centrally rather than through individual energy providers. As with all current transfers from the government to households, the EBSS payments are classed as income for tax purposes.
This aligns with the Office for National Statistics classification of other government transfers to households, such as Council Tax rebates. The EBSS discount will be added to electricity bills in six monthly payments between October and March 2023. If you have a smart prepayment meter, the money will appear as a credit on your balance, and you won’t need to take any action. The discount will also be applied to your bill if you have a traditional prepayment meter, but you’ll need to redeem vouchers at the Post Office to receive your payment.
How Do I Get An EBSS Payment?
The government brought in the main EBSS, which gives most households £400 to help with energy costs automatically via their supplier. This scheme ran alongside the Energy Price Guarantee, which sets a rate that suppliers must charge for a unit of electricity and gas. If you’re a traditional prepayment meter customer, the EBSS is a discount voucher you can redeem at your local PayPoint or Post Office branch. Unlike some vouchers the media receives, you don’t need your name on the voucher to redeem it.
There’s also an additional support package, the EBSS Alternative Funding and the EBSS Alternative Fuel Payment, which are available to people who don’t have a domestic electricity supplier or pay through an intermediary (such as care homes and park homes). You can apply for this by visiting the government’s online application portal. The application portal is open until 31 May 2023 and is free to apply.
What Happens if I Don’t Get an EBSS Payment?
The UK Government announced the EBSS applies to everyone with a domestic electricity supply. It will appear in your energy bills as six payments between October and March 2023. The scheme is designed to help those who need it most, but it is essential to remember that it is not a free money handout. The Department for Business, Energy and Industrial Strategy (BEIS) will pay cash into a ring-fenced account, which each supplier must pass on to eligible customers as a reduction in their energy costs. We understand that some people have experienced problems with their vouchers needing to be delivered or redeemed. This is a result of how the schemes were designed and delivered by the UK Government and is not the responsibility of Advice NI.
Other useful links about Business Energy:
Green Initiatives For Your Business
Underfloor Heating
GB Energy
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