No refusal of energy rebate

HOUSEHOLDERS will not be able to refuse the repayable £200 energy rebate coming later this year, the Government has said. The measure was announced by Chancellor Rishi Sunak in his Spring Statement as part of a package intended to deal with rising energy bills.

The rebate, which is in addition to the £150 nonrepayable council tax rebate, will be given out in October and then recouped over the next five years. But a new petition says the scheme is flawed and is asking for the right to turn it down. More than 12,000 people have signed the petition so far, including people across the Midlands.

At 100,000 signatures, this petition will be considered for debate in Parliament

The petition, created by Sharron Espin, says: “Stop forcing people to accept a loan for energy without the right of refusal. This will put more strain on many financially and mentally.”

But the Government’s Department for Business, Energy and Industrial Strategy insists the repayable rebate is not a loan and allowing people to opt out would just increase the administrative costs.

The Government response said: “To spread the cost of the energy price shock, from October the Government will provide funding to all energy suppliers to pass a £200 reduction on to domestic electricity customers’ bills. This will be recouped through energy bills over five years from 2023. The Government will not profit from this scheme. The amount recouped by the Government will be no greater than the sum paid out to consumers from October 2022.

“We would like to emphasise the bill reduction is not a loan, rather, it is a grant which will be delivered to households by their energy supplier to help reduce the burden of energy bills from October. It does not create a liability for any individual. There is no interest due on it, no debt attached to it, and it will not affect recipients’ credit rating. It is a grant now with a levy on future billpayers.

“Allowing consumers to opt out of receiving the reduction on their bills would likely increase the administrative costs of the scheme. “