Warm words and cold comfort? Energy support reccomendations for the winter ahead.
A recent report from the UK Parliament's Energy Security and Net Zero Committee highlights concerns about inadequate government strategy to support vulnerable households facing sky-high energy bills.
A recent report from the UK Parliament's Energy Security and Net Zero Committee highlights concerns about inadequate government strategy to support vulnerable households facing sky-high energy bills this winter.
The ESNZ Committee report notes that while unprecedented financial support was provided last winter at the height of the energy price crisis, no exact measures have been announced for the coming cold season - even though bills are predicted to remain 69% higher than they were in 2021.
With an estimated 6.6 million UK households in fuel poverty, the committee urges the government to take immediate action. Recommendations include:
Extending existing assistance programs like the Warm Home Discount and Cold Weather Payments
The report suggests prioritising low-income and fuel-poor households, and those with disabilities and medical conditions. Discounts should not be based on a first-come, first-served basis.
Cold weather Payments
If the average temperature falls below 0°C for seven consecutive days in a region, eligible households are given £25 - retrospectively.
The report hails this as an “outdated, old-fashioned scheme,” and suggests that it be based on the daily minimum temperature, not an average; and to be provided in advance of forecast cold events.
Warm Homes Discount
Energy suppliers provide rebates to low-income and vulnerable households in, or at risk of, fuel poverty; It is a one-off payment of £150.
N.B. not all suppliers are required to offer the rebate.
Implementing an energy social tariff to subsidise bills for low-income families
Energy social tariffs
In the case of energy, the price of gas and electricity would be set below the cap on energy prices for those with low incomes.
Requiring energy companies to provide better customer service and priority support lines for charities assisting vulnerable groups
Revising the standing charge component of bills so costs better correlate with household usage
The standing charge is a daily amount that you must pay for energy - regardless of how much your household uses.
The report highlights that the standing charge has increased by over 65% in less than five years.
The ESNZ Committee deems the charge as “unfair and regressive” and recommends replacing it with a per-unit cost.
Accelerating the rollout of smart meters to help consumers manage consumption.
The report also slams the voucher redemption system used last winter for the Energy Bill Support Scheme, with 25% of vouchers unclaimed due to administrative failures.
All in all, the committee raises socially just recommendations for the government to act on over the coming winter.
Ofgem has since announced its intention to launch a review into standing charges, but government action in response to the committee has been lacking.
With the Autumn Budget coming tomorrow we may see more support made available, and if there is, you can find out more about it here on EcoTwig.