How will the energy price guarantee affect heating oil households?

If you are a heating oil household, over the last few months, you’ve probably been wondering how you will receive the £200 heating oil payment this winter. We understand that long government documents can take time to find relevant information. So we’ve simplified how heating oil homes will receive this support and shared some extra advice on ordering heating oil this winter.

UKIFDA has announced that the government will start paying the £200 alternative fuel payments from February 6th 2023.

"The government yesterday provided more guidance regarding the £200 alternative fuel payment which will start to be processed from February 6^th.

Heating oil customers should be aware of the following:

• Customers have been identified using an off the gas grid database and recent census information.
• The majority of customers will receive their £200 automatically via their electricity supplier starting on February 6, in a similar fashion to other recent government payments (direct debit, credit to account or voucher).
• There will be some small exceptions – for example customers that don’t have an electricity account or those that use oil but live in a gas grid area. These customers will need to apply via an online portal which will be open in February alongside a post code checker.

We expect further information closer to February 6^th and will continue to update customers.

Households seeking more information on AFP or on wider Help For Households support schemes should visit https://helpforhouseholds.campaign.gov.uk. "

UKIFDA 23/01/23

Should I wait for more information before ordering?  

 It is evident that the uncertainty around the heating oil fund is resulting in some households waiting for more news before topping up. This is very concerning, as those delaying their orders will need to top up at the start of the winter when suppliers are usually running at maximum capacity and demand is at its peak.  

We continue to seek clarity as to when and how these funds can be accessed, and we would certainly expect them to be retrospectively claimed. Therefore, we continue to advise that you should not delay ordering as this could potentially result in supply disruption in the lead-up to winter due to the surge in demand. 

If you can, order a small top-up now so you have more flexibility over your winter fuel orders. 

What is the energy price guarantee?

Liz Truss announced on the 8th September that an energy price guarantee will be available to households that rely on electricity and gas to heat their homes. This means that households will not pay over £2,500 per year for their energy. This guarantee will last for two years, and the cap is based on the average household bill. So, some people will pay more, and others less. 

Does the energy price guarantee apply to heating oil households?  
Heating oil households are not included in the energy price guarantee as it only applies to homes that rely on gas and electricity. However, it was announced that there would be a fund available for heating oil households so they could get equivalent support. 

” For those using heating oil living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.”

Liz Truss

Is there government funding available for heating oil households to help with energy bills?

Information on the heating oil fund is yet to be shared, but the government has stated that support is coming for off-the-gas grid homes. Not only was the heating oil fund announced, but it was also confirmed that the £400 rebate available to all UK homes to help reduce energy bills will continue to go ahead. For the most vulnerable households, they will be entitled to receive more funds, which can equal up to £1,500.  

How do I get the energy rebate?

This £400 will be split over six months, with the first instalment reaching home in October.  

Monthly Payment Breakdown

October – November – £66  

December – March – £67 

If you receive a winter fuel payment, you will receive an extra £300 between November and December. 

BoilerJuice advice for this winter

As the No.1 online marketplace for heating oil, our expertise in the industry and research helps us share up-to-date advice, making sure you save more on your top-ups. 

Since the announcement, our advice has remained the same. We’ve summarised our five top tips to help you prepare for the winter ahead. 

1. If you can, top up before the winter period 

Our trends over the last 16 years have shown that heating oil prices usually rise with demand. To lower the chance of paying more for your top-up, order before the winter rush as prices tend to be lower. 

2. Consider a payment plan   

A payment plan is a great way to save for your next top-up. This helps spread the cost of your heating bills, and if prices rise, you’ll have peace of mind knowing funds are already available. 

3. Keep an eye on heating oil prices

Knowing what’s going on with heating oil prices will help you make an informed decision on when the best time is to buy. 

4. If you can order out of busy periods 

In the run-up to Christmas, or when there is expected snow, demand can increase. Ordering outside of busy periods can help you save more on your top-up. 

5. Keep up to date with heating oil updates

With the heating oil fund only just announced, more information is set to come. We’ll always send you the relevant updates to help you save more and keep you in the know with any heating oil news.