IRRV Alert - week ending 4th November 2022 Part 1

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Pass-through requirements for energy price support provided to intermediaries (31 October 2022)

Guidance

Pass-through requirements for energy price support provided to intermediaries

How intermediaries such as landlords are required to pass through to end users energy price support provided by the Energy Price Guarantee, Energy Bills Support Scheme and Energy Bill Relief Scheme.

From:
Department for Business, Energy & Industrial Strategy
Published
31 October 2022
Last updated
4 November 2022 — See all updates
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Documents

 

Guidance on the pass-through requirements for energy price support provided to intermediaries

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Template letter for intermediaries

MS Word Document, 28.1 KB

 

Template letter for end users

MS Word Document, 29.3 KB

 

Guidance on the Energy Bill Relief Scheme pass-through requirements for heat networks in the UK

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Template letter for heat network suppliers

MS Word Document, 35.4 KB

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Template letter for heat network consumers

MS Word Document, 33 KB

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Details

In the Energy Prices Act 2022, the government has established a requirement that energy price support is passed on to end users. This means that intermediaries that have been provided with support from the following schemes are required to pass the support obtained to the end users who are the intended beneficiaries of the relevant schemes:

  • Energy Price Guarantee
  • Energy Bills Support Scheme
  • Energy Bill Relief Scheme

The government introduced regulations to bring this into force in Great Britain on 1 November 2022. Regulations for pass-through requirements for the Energy Price Guarantee Northern Ireland and the Energy Bill Relief Scheme Northern Ireland came into force on 5 November 2022 and will be brought forward for the Energy Bills Support Scheme Northern Ireland in due course.

This legislation puts obligations on intermediaries who provide energy but are not licensed energy suppliers. This may include but is not limited to:

  • landlords
  • sublets
  • student accommodation managers
  • social housing providers
  • local authorities (for council housing)
  • park site owners (for park homes)
  • site managers
  • marinas if using shore power (for boat homes)
  • heat networks
  • CHP operators
  • electric vehicle charging operators
  • other residential building managers

The guidance

This guidance provides an overview of the obligations on intermediaries to pass through the energy price support. It provides illustrative examples of how intermediaries may calculate the ‘just and reasonable’ amount to pass through to comply with the regulations. The guidance also summarises the process for enforcement if these obligations are not met.

In addition it includes a template letter that intermediaries can use to send to end users to meet their obligation to share information. A further template letter is provided for end users to raise concerns with their intermediary if this information has not been provided or there is disagreement on the amount that the intermediary has passed through to the end user. Template letters provided are only illustrative, and intermediaries should refer to their obligations as set out in the Regulations.

There is separate guidance for heat networks which provides an overview of the obligations on heat suppliers to pass through the benefits of the Energy Bill Relief Scheme to heat network consumers. Illustrative examples, example letter templates, and a summary of the enforcement process are also included.

Published 31 October 2022
Last updated 4 November 2022 


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