THOUSANDS of hard-working families are facing a brutal energy bill blow as a “sneaky” loophole in the Government’s flagship price cut is revealed.
In a major Budget promise, the Government vowed that energy bills would be slashed by £150 a year from April 1, 2026.
But a “small print” glitch in Ed Miliband’s new rules means customers of smaller suppliers could be left £60 out of pocket.
The promised £150 saving is made up of two parts.
Most of it comes from cutting green taxes, but the second chunk – worth about £60 – comes from axing the “ECO” scheme.
Suppliers with more than 150,000 customers had to run this scheme, and they covered the cost by adding it to customers’ energy bills.
As a result, only the big energy firms were forced to pay into that scheme.
Smaller firms like 100Green, Fuse Energy, Good Energy, Home Energy, and Tulo Energy never charged you for it in the first place, so these companies won’t have any “savings” to pass back to you.
If you’re on a fixed-rate deal with one of these “challenger” suppliers, you may see a smaller reduction in your bill — potentially as little as £90.
Customers on variable tariffs set by Ofgem’s price cap should still receive the full savings.
Energy Secretary Ed Miliband said he expects the Budget measures to be passed on to consumers in full — “every penny”.
A government spokesperson added: “We expect all domestic suppliers to pass on cost savings”.
Ofgem said smaller energy suppliers might be able to cut their profits elsewhere so they can pass on the same savings as the bigger firms.
So the situation could still change – but there’s no guarantee.
So far, none of the smaller suppliers has promised to do this.
If you’re with a small firm and your fixed deal is coming to an end, it could pay dividends to shop around.
Switching to a major supplier before April could be the only way to make sure you get every penny of that £150 windfall.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
