Energy Crisis: Government Announcements and what it means for heat network and off grid residents

  • Post author:
Good news is has come by way of the recent government announcements. The Energy Bill Relief Scheme will mean that the Government will provide a discount on wholesale gas and electricity prices for all business customers. This includes commercial landlords whose current gas and electricity prices have been significantly inflated in light of global energy prices. These discounts will be passed onto residents as the commodity price is a key component when calculating tariffs. However, the discount only relates to contracts signed after 01 April 22 for consumption used from 1 October 22 to 31 March 2023 and only relates to the commodity element of the cost stack, which makes up the overall invoice value. In addition to the discount there is also to be a £400 equivalent subsidy available to the 1% of households who would not otherwise have received this support. It is not known how this is to be distributed but we do know it will be mandatory for landlords to pass on within energy billing. Since December 21, when prices started to soar, Ginger Energy has actively campaigned for price cap protection, we were the first to bring the issue to the attention of the media and OFGEM, so it’s wonderful news, that residents are now going to see protection for the next 6 months. It is this 6 months when its needed most as its going to be the most expensive time to buy power on record. There is an indication that support will remain after 6 months for vulnerable customers, and we believe that heat network and private wire customers will fall into that category. How the discounts will be applied is somewhat complex as the headline figures are not what is going to appear on invoices. Ginger Energy are hosting a series of lunch time presentations to talk residents through the changes. Look out for dates on social media and following our linkedin page.