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Cost of living: Oil customers to get 拢100 electricity credit

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Oil being dispensed into a home heating tankImage source, K Neville/Getty Images

The government has confirmed that a 拢100 payment to home heating oil customers will be in the form of a credit to electricity bills.

About two thirds of households in Northern Ireland use heating oil.

The payment was announced last month as part of a package of measures to help with energy costs but many Northern Ireland politicians have criticised it as being inadequate.

It is not yet clear when the 拢100 will be paid.

In an update on the scheme, the government said the relatively modest payment reflected the fact that the cost of gas heating had risen more sharply.

"The 拢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," a statement said.

It added that the government would continue to monitor the prices of alternative fuels, such as heating oil, and would consider further intervention if required.

It is not yet clear when the 拢100 will be paid, with the statement only referring to "this winter."

Nor is it clear how people will be expected to prove they use oil heating.

The payment will also go to people who use LPG, coal and biomass as their main heating fuel.

The 拢100 will be delivered as a top-up to the 拢400 Energy Bills Support payment, which is going to all UK households that are connected to the gas or electricity grid.