Households who are connected to the electricity network but who use fuels other than gas, such as heating oil, to heat their homes will still receive support through the Energy Price Guarantee for their electricity costs, as well as the Energy Bills Support Scheme.
If you are not able to receive a support for your heating costs through the Energy Price Guarantee (for example because you live in an area of the UK that is not served by the gas grid ), the Government will also provide an additional payment of £100 to compensate for the rising costs of other fuels such as heating oil.
I have been in constant contact with my colleagues at the Department for Business, Energy and Industrial Strategy (BEIS) to enquire how this support will be delivered, and today I have received a response.
Households eligible for the Alternative Fuel Payment (AFP) payments will receive £100 as a credit on their electricity bill this winter. Households who are eligible for but who do not receive AFP or the £100 heat network payment, because they do not have a relationship with an electricity supplier for example, will receive the £100 via the AFP Alternative Fund which will be provided by a designated body. BEIS have informed me that they will confirm details of the AFP Alternative Fund shortly. The government has assured me that they are committed to delivering this support to customers as fast as possible.
The £100 payment has been calculated to ensure that a typical customer using heating oil does not face a higher rate of growth in their heating costs since last winter, in comparison to those using mains gas who are supported by the Energy Price Guarantee. The government will continue to monitor the prices of alternative fuels, such as heating oil, and will consider further intervention if required to protect UK households from extraordinary fuel prices.
The AFP will be provided to all customers who use an alternative fuel to mains gas. This includes, for example, heating oil, LPG, coal, and biomass. This is fantastic news which I have pushed for so that nobody is left behind this winter.