Energy rebate - how can your tenants claim it?

News at Howland Jones | 01/10/2022

With tenants spending much more of their income on energy bills, many are seeking ways to lower this outlay.

Liz Truss has announced that the energy price cap would end on 30 September 2022 and be replaced by the Energy Price Guarantee from 1 October 2022. Despite Truss’s recent announcement, households will still benefit from the Energy Bills Support Scheme (EBSS), which was introduced by former chancellor Rishi Sunak. 

The EBSS and the Energy Price Guarantee have been put in place to try and help UK households save money when energy bills are at an all-time high. Tenants and landlords must be aware of these upcoming changes to ensure they reap the benefits. 

Everything you need to know about the energy rebate scheme

The EBSS will allow households in England, Scotland, and Wales to receive a £400 non-repayable discount on energy bills.

The government has confirmed that regardless of changes to the tariff or the electricity supplier, households will still be able to claim the discount. Therefore, tenants do not need to worry about changes to the electricity supplier ruining their chances of benefitting from the scheme.

Tenants are not required to fill out an application form or contact their energy supplier to receive the rebate and have their energy bills capped at £2,500 a year. The price freeze will apply to all households for the next two years, while households that meet the criteria for the energy rebate scheme will automatically receive the discount for six consecutive months at the start of October.

In October and November, a £66 discount will be applied, while a £67 discount will get added in December, January, February, and March. Assuming that the tenant qualifies, the discount will be applied for six months starting in October.

Tenants typically pay for energy using a prepayment meter, a smart payment meter, a direct debit card, or a credit card. The way the discount is applied will vary depending on which one of these payment methods is used by the tenant.

Tenants who pay using a traditional prepayment meter will receive redeemable vouchers, while smart prepayment meter users will have a discount that gets credited to the meter.

Those who pay using a direct debit card will receive a refund to their bank account, and credit card users will receive a discount.

Household support with energy efficiency

In recent years, renters have become keen to live in eco-friendly homes to keep their energy costs as low as possible. 

Landlords must remember that the EBSS is only a temporary measure to help households beat the burden of rising energy costs. The new Energy Price Guarantee will be in place for two years.

Which? states that in accordance with the new unit rates that support the price cap, customers can expect to pay 34p per kilowatt hour for electricity with an average standing charge of 46p per day, and 10.3p per kilowatt hour for gas with an average fixed charge of 28p per day. 

Typical households are estimated to save around £1,000 compared to Ofgem’s price cap of £3,549. Ofgem states that homes use around 2,900 kilowatt hour of electricity and 12,000 kilowatt hour of gas in a year.

As energy costs continue to soar, energy efficiency will remain a key topic of interest in the rental sector. Landlords willing to upgrade their homes with eco-friendly improvements are more likely to benefit from a wider pool of long-term tenants, even after the scheme finishes.

Landlords who keep a close eye on the developments in the industry regarding energy efficiency targets, and government support for themselves and their tenants, will be able to make the most of their rental properties. 

At Howland Jones, we will do all we can to help you get the most from your rental properties. Our offices are based in the village of Measham in the East Midlands, and we operate within a 20-mile radius of our base, giving us extensive knowledge of the local area.

You can find out all about us by getting in contact here.