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Firedog
Super User
Super User
October 12, 2022
Solved

How will the Governments Alternative Fuel Payment be made?

  • October 12, 2022
  • 94 replies
  • 7812 views

On this page https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022, we can read that 

If you do not use mains gas for your heating

The Alternative Fuel Payment (AFP) will provide a one-off payment to UK households that use alternative fuels for heating, such as heating oil or LPG, instead of mains gas. This £100 payment will ensure that all households who do not benefit through the Energy Price Guarantee to heat their homes, receive support for the cost of the fuel they do use.

Households eligible for these payments will receive £100 as a credit on their electricity bill this winter.


Can OVO confirm that my electricity account will be credited with a £100 AFP at some stage, and could they also say when I might expect to see it?

My house does have a night storage heater, but because it’s so expensive and inefficient, I use a wood-burning stove for heating. 

 

Best answer by Emmanuelle_OVO

Updated on 21/06/23 by Abby_OVO

 

For information on the Alternative Fuel Payments for the coming year, we’ll update this as soon as we have more information available.

 

*Best answer taken from a similar thread

 

Government Payment for Alternative Fuels (like heating oil)

 

 

The Government has now confirmed details about how the ‘Alternative Fuel’ payments (AFP) will be made. This includes households without a direct relationship to an energy supplier. 

 

Information taken from the GOV website where you can find the latest updates on this topic

 

We have now received the supply numbers (MPANs) of eligible customers from The Department of Business Energy and Industrial Strategy (BEIS) and will be issuing a communication to these customers as soon as possible to inform them that they will receive the Alternative Fuel Payments (AFP) support.

 

AFP support will be issued as per the Energy Bills Support Scheme (EBSS) payments, so by either a payment to the customer's bank account, if paid by direct debit or as credit added to their energy account if they pay on demand.

 

For PAYG customers credit will be added directly to the customer's smart prepayment meter; or a cash voucher issued if it’s a traditional meter. We intend on adding a note to OVO customer accounts to make it clear that they have been deemed as eligible by BEIS. So if you don’t receive a communication from us, Support should be able to advise if you have been deemed eligible or not. 

 

We’re planning to start making these payments from 13 February, if you’re looking for more information on the AFP or on wider ‘Help For Households’ support schemes, can find this here

 

 

Think you are eligible for the AFP but didn’t receive it? 

 

You can apply on the GOV website here

 

If you cannot apply online, call the helpline:

 

Telephone: 0808 175 3287
Monday to Friday, 8am to 6pm
Find out about call charges

 

Energy bills support in England, Scotland and Wales will be via ‘EBSS Alternative Funding’ and ‘Alternative Fuel Payments’

 

  • People in England, Scotland and Wales without a direct relationship to a domestic energy supplier, will receive a £400 discount on their fuel bills through the Energy Bills Support Scheme Alternative Funding (EBSS Alternative Funding).
  • The government is also providing a further £200 Alternative Fuel Payment (AFP) to help those households in England, Scotland and Wales who use alternative fuels such as biomass or heating oil to heat their homes this winter. Most households eligible for the AFP support in UK, will receive the payment automatically via their electricity supplier in February, with no need to take any action.
  • However, households who will need to apply for the AFP, for example because they do not have a relationship with an electricity supplier, will be able to do so in February, through the same GOV.UK portal as the one that will be used to apply for support under the EBSS Alternative Funding scheme.

 

Online applications will open in January for households in England, Scotland and Wales who are eligible for the £400 EBSS Alternative Funding to submit their details, alongside a helpline for those without online access. Payments to households that meet the eligibility criteria – including people who get their energy through a commercial contract or who are off-grid – will be made by local authorities in Great Britain. This is likely to include:

 

  • care home residents
  • residents of park homes
  • tenants in certain private and social rented homes
  • homes supplied via private wires
  • residents of caravans and houseboats on registered sites
  • farmers living in domestic farmhouses
  • off-grid households”

 

*This thread will be updated when the application forms open*

 

Additional support is available for customers who may be struggling with their bills:

 

Customer support package and where to apply

Warm Home Discount

What to do if I can’t afford my energy bills? 

Energy Bills Support Scheme

94 replies

Newcomer
February 9, 2023

Morning all just had a conversation with a call handler those who are eligible for the alternative fuel payment will be notified on the 13 February fingers crossed 

Emmanuelle_OVO
Retired Moderator
Retired Moderator
February 10, 2023

Hey @Jasmine 123,

 

Just to update you, 

 

If a customer believes they should be eligible, but aren’t contacted by us. BEIS are setting up a form on their website that these customers can fill in to flag that they have been missed.

 

Their form isn’t live yet, I’ll update this topic when I get more information.

 

@Jeffus is correct, we have nothing to do with the eligibility process, this is a government payment and they select who is eligible. All we do is facilitate this payment.

 

However they are going to be creating this form, so there will be an opportunity to challenge it, if you are missed.

 

Hope this helps. 

Renewable Energy? Big Fan.
Newcomer
February 10, 2023

I’ve had an email telling me I’m eligible as I use oil. My question is - when will the payment be made if my direct debit for this month already went out on the 1st February ? I’ve read payments will be made in February and will be sent to your bank 3-5 days after your direct debit clears. What happens for those customers whose direct debits went out before the 7th?

juliamc
Rank 20
Rank 20
February 11, 2023

I heard (on BBC Farming Today from a few days ago) that the £200 payment is not going to be sent on to the customer’s own bank account, it’ll just go towards their electricity bill. ???

Firedog
Super User
FiredogSuper UserAuthor
Super User
February 11, 2023

I heard (on BBC Farming Today from a few days ago) that the £200 payment is not going to be sent on to the customer’s own bank account, it’ll just go towards their electricity bill. ???

Ah, yes, that font of all wisdom, Farming Today (along with Blue Peter) 🙂. 

This is what the instructions to energy suppliers say:

6.3 The payment should be provided in one of the following ways, by: a. Reducing the amount collected from the customer by an amount equal to the AFP; or b. Applying a sum to the customer energy account of an amount equal to the amount of the AFP; or c. Refunding the customer an amount equal to the AFP or paying to the customer an amount equal to the AFP

 

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
juliamc
Rank 20
Rank 20
February 11, 2023

Haha - I get all my facts from Farming Today ! Do we know how OVO will handle the £200? Are we assuming they’ll choose ‘c’?

Newcomer
February 11, 2023

I think I did read it would be done in a similar way to the other energy rebate whereby keeps your direct debit the same amount but will be sent back to your bank. I just wondered what happens if you have already paid your direct debit for this month before the energy suppliers were given the list of customers who are eligible. 

Firedog
Super User
FiredogSuper UserAuthor
Super User
February 11, 2023

… it would be done in a similar way to the other energy rebate whereby keeps your direct debit the same amount but will be sent back to your bank. I just wondered what happens if you have already paid your direct debit for this month ...

This is a different sort of rebate from the EBSS, because it’s only some consumers who get it. OVO unilaterally imposed the provision that the EBSS rebate would only be refunded after the Direct Debit had cleared, I suppose to avoid some ‘bad debt’ - the rebate could be applied to a debit balance in cases where the DD didn’t go through. The AFP has no connection to the OVO account, so Refunding the customer an amount equal to the AFP isn’t affected at all by whether or when the DD clears. Transferring these funds to customers via their electricity account just happens to be the simplest way of doing it for all concerned (apart from the poor electricity supplier, of course, who has to jump through hoops to make it work).

The upshot? You’ll get it when they send it 😉.

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Newcomer
February 11, 2023

This is quoted from the email relating to the AFP: 

If you pay by Direct Debit

 

You'll get your payment straight into your bank account as a refund. This means you'll carry on paying your full Direct Debit amount. We'll apply the payment to your energy account as a credit first, and then we'll automatically refund the payment to your bank account shortly after. If you cancel your Direct Debit, or your payment fails, there may be a delay in receiving your payment.

 

You'll be able to see your payment in your detailed bill, labelled 'Alternative Fuel Payment' and listed in the 'Summary of charges' section. The refund to your bank account will be displayed in the ‘Your balance' section.

Firedog
Super User
FiredogSuper UserAuthor
Super User
February 11, 2023

Thanks - I should have realized that. OVO only knows which bank account to direct a payment to by virtue of having a DD arrangement with it. If that DD fails, it could indicate that the account has been closed, so they’ll have to check before making the transfer. I’ve no idea how often DDs fail, but if it’s a regular occurrence, that check may be automated. So that’s where any payment delay might arise.

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |