Government confirms how Alternative Fuel Payments will be administered

The government confirmed today how the £100 fixed Alternative Fuel Payment for home heating oil users will be managed.

As part of the government’s Energy Prices Bill measures, the Alternative Fuel Payment scheme is proposed to give a one-off payment of £100 to UK households who are not on the mains gas grid and as a result use alternative fuels, like heating oil, to heat their homes.

The UK and Ireland Fuel Distributors Association (UKIFDA), our trade association, have been working with the government to help advise on the best way to administer the funds to heating oil users, given the differences in how the heating oil market compares with that for gas and electricity.

The government has confirmed that the £100 payment will be delivered through customers’ electricity bills rather than via fuel distributors, similar to that of the Energy Bills Support Scheme.

The government will be confirming timings soon.

UKIFDA continue to offer support to the government in the design of the payment system through electricity companies. It is also noted that some heating oil customers may not have a relationship with an electricity supplier. Again, UKIFDA’s consultations with government will ensure that customers in this bracket are provided a suitable alternative route, and do not miss out. Full details will be confirmed by the government soon.