A MAJOR energy supplier will give out an extra £50million worth of support over the winter months, including direct cash to customers who are struggling to pay their bills.
OVO Energy, which has around four million customers, said applications for the support will open on October 1.
OVO Energy will give out an extra £50million support this winter[/caption]
The “Big Six” supplier runs the extra support service for users all year round, but is now increasing the amount of aid it’s giving out ahead of the winter months.
It follows the government’s decision to restrict state winter fuel payments to those receiving pension credit.
This means around 10 million people will lose out over the coming months, with the benefit taken away from all but the poorest pensioners in the country.
And, customers can expect their energy bills to rise by £149 a year come October, when Ofgem is expected to raise its price cap.
OVO’s £50m package includes payment holidays for prepayment customers, free energy-saving products and direct financial support.
The package opens on October 1, but Ovo’s website is live from today for customers to check if they’re eligible for any help.
How much customers could receive depends on their individual circumstances and eligibility.
If you want to check your entitlement, it’s worth having your monthly disposable income and an up-to-date meter reading to hand to check online.
It is also worth noting that this scheme is only open to OVO customers.
However, many other suppliers are offering extra support to customers this winter.
For example, Octopus Energy said it would be widening its £30million support fund to low-income pensioners who are no longer eligible for the Winter Fuel Payment.
Through the scheme, customers can get discretionary credit of between £50 and £200.
The supplier is encouraging all customers to get in contact if they’re struggling with their bills.
Direct bill support could include vouchers up to £500 or a payment holiday.
You can contact Octopus Energy via its website.
The Octo Assist fund is still open for applications and there is no deadline for customers to apply by.
What other support is available?
If you fear you may struggle to afford your energy costs this winter, you should note some of the other financial help available.
Many of the UK’s biggest energy suppliers have grants in place to support struggling customers.
Eligibility criteria may vary depending on the supplier, while the amount you can get depends on your financial circumstances.
The country’s biggest supplier, British Gas, previously had an energy grant scheme in place, with the hardest-pressed households receiving a grant of up to £2,000.
The firm has also launched a debt reduction scheme called “You Pay: We Pay”.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
Struggling customers will also be able to get part of their debts wiped via what’s known as “debt matching”.
For instance, if a customer pays £100, British Gas will pay off £100 too, effectively wiping half the amount owed and getting the customer back on track sooner.
The £15million scheme opened in June and eligible customers have been contacted directly.
Elsewhere, EDF has a customer support fund which on average wipes £1,250 off customers’ bills.
It is available to vulnerable customers experiencing hardship.
To apply, visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have.
Check directly with your supplier to see what help is available from them.
You should also be aware of the government’s £150 Warm Home Discount and Household Support Fund.
The Sun previously rounded up all the energy bill help worth £5,710 that you could be eligible to claim, which you can read here.
How is the winter fuel payment changing?
From this year, only those receiving Pension Credit and other means-tested benefits will qualify for winter fuel payments worth £200.
Households where someone is over the age of 80 will receive £300 in winter fuel payments.
Pensioners receiving Universal Credit and income support will also still receive the payment.
It’s thought the change will cut the numbers receiving the benefit down from 11.4million to just 1.5million.
The decision by the new government was taken to help save money to fill a £22billion “black hole” in the country’s finances.
Experts said the move should be a prompt for those receiving State Pension to check their eligibility for Pension Credit and other state benefits.
A huge £2bilion goes unclaimed in Pension Credit each year, with around 800,000 people thought to be missing out.
The benefit tops up your weekly income to £218.15 if you’re single or join income to £332.95. This is worth £2,677 a year.
When you receive Pension Credit it also unlocks other financial support such as council tax benefits and free TV licences for over-75s.
You can use an online benefits calculator to find out your entitlement to support, there is a list of independent and free checks you can make at gov.uk/benefits-calculators.
You can start an application for Pension Credit up to four months before you reach state pension age – or if you claim after, you can backdate it by up to three months.
Applications need to be made on the government website or by calling 0800 99 1234.
You’ll need your National Insurance number, as well as information about your income, savings and investments.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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