According to an impact assessment carried out by the Department of Energy and Climate Change (DECC), suppliers have said not all eligible customers will be able to receive their £12 rebate.
Affected customers could include those who are moving home or switching energy supplier as their accounts are “in transit”. According to the Telegraph, about 678,000 households will be affected.
Prepayment customers to receive vouchers
An additional 4.1m customers on prepayment meters will also be affected as they pay for energy in advance and cannot be credited. They will be sent £12 vouchers to redeem, DECC estimates that 30% will not carry out the steps necessary to claim their rebate.
Although the rebate is expected to be implemented around mid-October, most homes will only see the £12 deducted from their bills the next time their supplier reviews their energy bills. This typically takes place once a year.
Price cuts did not wipe out rises
The energy rebate is part of several cuts announced by the Government following last winter’s price hikes. Despite the price cuts, price rises mean the average consumer will still be paying £50 than last year.
The £12 rebate is part of the Government’s plan to reduce energy bills for consumers. The sum represents the average amount paid per household to fund the Warm Home Discount scheme, which helps vulnerable people.
The Warm Home Discount scheme will now be funded through taxation, a change which the Government says will see benefits go directly to customers, not via energy suppliers.
Flint: ‘Some of the most vulnerable households won’t even receive this money’
Caroline Flint, shadow energy secretary, blasted the news, saying: “This rebate is coming straight from taxpayers’ own pockets, in a desperate attempt by the Government to say that they’re doing something on bills.
“And the Government’s own figures now show that many, including some of the most vulnerable households, won’t even receive this money.”