Energy bills rebate: How will energy providers pay you?

Ofgem recently announced the energy price cap will rise to £3,549 a year for an average household from October, which works out approximately 80 percent higher than what bills cost at the start of the year – and this figure is only expected to increase in January. To help households with the ever-rising energy tariffs, the Government will be launching a support scheme to reduce bills starting from October 1.

The support comes in the form of a £400 discount, which will be administered by energy suppliers, to be paid to households over a period of six months to provide additional support throughout the winter months.

Britons will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.

Chancellor of the Exchequer, Nadhim Zahawi, said: “We know that people are struggling with rising energy prices which is why we have taken action with support over the winter months to help ease the pressure on household budgets.

“This £400 off energy bills is part of our £37billion of help for households, including eight million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.

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“We know there are tough times ahead and we will continue to do everything in our power to help people.”

The £400 rebate will be administered by energy suppliers, but each will have different ways of distributing the six instalments. Payments will be made depending on how people typically pay for their energy.

Direct debit payers will see the grant paid automatically by their supplier – either refunded straight into their bank accounts or in the form of a direct debit reduction.

Those who pay using credit will get the cash credited to their account after the bill is issued.

Smart prepayment meter customers can expect to see the credit added directly to their prepayment meters in the first week of every month, while traditional prepayment meter customers will get the rebate in the form of vouchers to top up their meter.

Here’s a rundown of how each supplier will be distributing the rebate from October, from what we know so far.

British Gas

  • Monthly direct debit: Customers will see funds credited directly to their bank account
  • Standard credit: Customers will see funds credited to their energy account
  • Smart prepayment meter: The discount will be applied to the meter each month
  • Traditional prepayment meter: Customers will receive a gas or electricity voucher


  • Monthly direct debit on fixed rate: Customers will see reduced monthly direct debit payments and if a customer’s payments are less than £66/67, Bulb will reduce payments to £0 and add the extra as an account credit
  • Monthly direct debit on variable rate: Credit will be added to accounts and any excess credit will be carried over
  • Smart prepayment meter: Funds will be credited to electricity accounts (but there are plans to allow customers to switch it to gas)
  • Traditional prepayment meter: Customers can choose to receive a gas or electricity voucher

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