Tag: 2023

The press release issued by the Department for Business, Energy and Industrial Strategy on 23 January 2023.

The government today publishes figures showing how many vouchers have been used across energy suppliers.

• New figures reveal which suppliers are meeting their responsibilities and who needs to do more to deliver £400 government energy bill support for prepayment meter customers.
• £5.7 billion has been provided to 99% of households in Great Britain through the Energy Bills Support scheme, with 71% of all prepayment vouchers redeemed so far.
• Government also announces off-grid homes will receive their £200 energy bill support payment from 6th February.

Households across Great Britain are now able to see which suppliers are doing the most – and the least – to ensure prepayment meter customers are receiving £400 of support with their winter energy bills, as the government today (23 January) publishes figures showing how many vouchers have been used across suppliers.

For the first time, figures released today reveal voucher redemption rates for the Energy Bills Support Scheme (EBSS) broken down by supplier. E Gas and Electricity are at the top with an 85% success rate and Bulb coming in second with 79%. Those with the fewest redemptions include Good Energy, Utilita and Scottish Power, with the government calling on them and others to make sure they are doing all they can to ensure their customers with prepayment meters know what to look out for and exactly how to redeem their vouchers.

Administered by energy suppliers, EBSS is designed so customers receive the discount in the same way they pay their energy bills, such as via direct debit, credit, smart meters and traditional prepayment meters. Most people will receive the support automatically, with no action necessary. However, people who use traditional prepayment meters are sent monthly vouchers by their supplier via text, email or post with suppliers having contacted customers in advance of the scheme launching in October to advise how the discount would be applied.

Yesterday, the Business Secretary pledged to crack down on the mistreatment of energy users by suppliers, following reports showing some aren’t doing enough to support vulnerable customers. As part of this he committed to publishing a list of supplier redemption rates for Energy Bills Support Scheme vouchers – showing who is meeting their responsibilities and who needs to do more.

Business and Energy Secretary Grant Shapps said:

“The public have a right to know which suppliers are leading the charge with getting this help to them, and that’s why I’m holding energy companies to account to make sure they are doing everything they can to support their customers at this time.

“We’re ramping up efforts so consumers know exactly what they need to do to redeem these vouchers, but we need suppliers to do much more and I want to see these numbers rise.”

Today’s figures show nearly £5.7 billion of support has now been provided to 99% households across Great Britain through the Energy Bills Support Scheme to help with their winter energy bills, provided in monthly instalments that began in October and will continue until March.

71% of vouchers have now been redeemed since the scheme launched, up from 65% following continual engagement with energy suppliers and consumers throughout the delivery of the scheme. However, ministers want to see this rise as figures show 99% of vouchers have been issued.

The Government is furthering campaign activity to reach eligible customers with additional advertising rolling out from today (Monday) across community radio, social media and national magazine titles.

Energy and Climate Minister Graham Stuart said:

“Government support has directly cut billions from household bills over the last few months, but we also want everyone to get the extra £400 help as well. With the return of freezing conditions, it’s more important than ever that those with prepayment meters look out for and redeem their vouchers as soon as possible.

“I want energy suppliers to do more to alert people to this help and make sure that everyone eligible is prompted to cash the vouchers in – particularly those who are struggling most. Everyone can help though. If you know someone with a prepayment meter, ask them if they’ve got their vouchers and prompt them to use them.”

Suppliers will tell customers where to redeem vouchers, which will be at a Post Office branch or a PayPoint shop, and must make several attempts to contact customers who have not redeemed their vouchers.

Off-grid households to receive Alternative Fuel Payments from February

The UK government has today also set out more detail on which households will be eligible to receive £200 of support under its Alternative Fuel Payments (AFP) scheme, with the vast majority of eligible households due to receive the payment automatically from 6 February.

The scheme will deliver £200 to households who use alternative fuels such as biomass, liquefied petroleum gas (LPG) or heating oil, helping around 2 million off-grid households to meet their energy costs this winter. The scheme will particularly support households in rural areas that are not connected to the gas grid. Support was doubled to £200 in the Autumn Statement to reflect the price rises experienced by people using alternative fuels to heat their homes.

Details set out today outline how households can expect to receive the payment, with delivery mirroring the methods used to provide support under the government’s other energy bill support schemes. Most households will not need to take any action to receive the support. A small proportion of households will need to apply for the AFP, for example because they do not have a relationship with an electricity supplier. Today’s publication includes more detail on how the scheme will determine which households need to apply for support.

Wider government support with energy bills

The EBSS and AFP come in addition to wider government support to help households with the cost of living this Winter. As well as discounts provided through the EBSS, the government’s Energy Price Guarantee (EPG) will save a typical household around £900 this winter, based on what energy prices would have been under Ofgem’s current price cap – reducing bills by roughly a third.

The EPG will continue to provide support for another 12 months from April 2023, and with energy prices forecast to remain high, this equates to an average of £500 support for households in 2023 to 2024. An additional £1,200 of support in direct payments is being provided to vulnerable households this year, with £26 billion worth of targeted support to help protect the most vulnerable announced by the Chancellor for the next financial year.

The press release issued by the Department for Business, Energy and Industrial Strategy on 23 January 2023.

The Business and Energy Secretary is today calling on suppliers to do more to protect vulnerable energy users.

Business and Energy Secretary Grant Shapps has today (22 January 2023) pledged to crack down on the mistreatment of energy users by suppliers, following reports showing some are doing nowhere near enough to support vulnerable customers.

He has written to energy suppliers calling on them to stop the harmful and anxiety inducing practice of forcibly moving consumers over to prepayment meters without taking every step to support consumers in difficulty.

The Business Secretary is asking suppliers to voluntarily commit to stopping this practice and holding their feet to the fire by demanding they share the number of warrants they’ve applied for in recent months.

He wants to see much greater efforts from suppliers to help consumers in payment difficulties before leaping to the extreme of forced prepayment switching, such as offers of additional credit, debt forgiveness or tools such as debt advice. In his letter, he has asked suppliers to discuss possible further action they can take to support customers and avoid forced fitting.

This action is part of a drive to increase transparency around prepayment meter installations, to track down the worst culprits and find out which energy companies are trigger happy in applying for them.

Courts are being overwhelmed with applications for warrants as they continue to mount, with reports that huge batches are being approved in a matter of minutes. The Business Secretary is working with Ofgem and the Secretary of State for Justice to ensure that the process by which suppliers bring these cases to court is fair, transparent and supports vulnerable customers.

Secretary of State for Business, Energy and Industrial Strategy Grant Shapps, said:

“Suppliers are clearly jumping the gun and moving at risk customers onto prepayment meters before offering them the support they are entitled to – I simply cannot believe that every possible alternative has been exhausted in all these cases.

“I am deeply concerned to see reports of customers being switched to prepayment meters against their will, with some disconnected from supply – and quite literally left in the dark.

“Rather than immediately reaching for a new way to extract money out of customers, I want suppliers to stop this practice and lend a more sympathetic ear, offering the kind of forbearance and support that a vulnerable customer struggling to pay should be able to expect.”

This follows reports that the number of customers switched to prepayment meters has soared in recent months, and in many cases unwillingly and without the offer of support. In some instances, this has led to vulnerable customers having their gas and electricity supplies cut off with little or no notice.

Prepayment meters allow customers to pay for gas and electricity on a pay-as-you-go basis and serve an important function by helping the avoidance of debt and court action. A moratorium on forced prepayment switching could lead to an increase in bailiff action and so the Government wishes to avoid going down this route.

Under Ofgem rules forced switching to prepayment must only ever be a last resort but, with the nation battling with energy prices, more have struggled to pay their bills and been forced installations and self-disconnection. In recognition of this, some energy suppliers are already taking steps to support consumers such as by pausing remote switching of smart meters to prepayment mode or providing additional credit to customers struggling to pay. The Business Secretary wants all suppliers to step up this kind of support to avoid resorting to forced fitting.

Minister for Energy and Climate Graham Stuart said:

“Switching users onto a prepayment plan should only ever be a very last resort and suppliers have a duty to exhaust all other avenues. It cannot be right that, at a time when consumers need compassionate treatment more than ever, so many are being let down in this way.

“The Government will continue to do all we can to ensure families and households stay warm this winter and we’re taking urgent action to bring about greater transparency when it comes to bad energy supplier practice.”

Concerns were also raised around the low number of vouchers being redeemed under the Government’s Energy Bills Support Scheme – meaning many vulnerable households had not had cash knocked off their energy bills. Suppliers are urged to make every attempt to make sure this happens, with the Government to publish a list of supplier redemption rates – showing who is meeting their responsibilities and who needs to do more.

The Business Secretary is worried about the low uptake of customers on traditional meters in prepayment mode and has demanded more transparent reporting of voucher redemption rates. He has encouraged traditional meter replacement with smart meters as they are able to receive government support payments automatically and detect self-disconnection.

Mr Shapps has written to Ofgem to ask that they do more to make sure suppliers protect vulnerable consumers. This includes revisiting their approach to enforcing supplier compliance, as well as the urgent publication of recent investigations outcomes into vulnerable customers. The Minister for Energy and Climate Graham Stuart has asked energy suppliers, Ofgem, Energy UK and Citizens Advice to meet with him at the Department for Business, Energy and Industrial Strategy to discuss matters further next week.

The five-point plan to tackle bad behaviour by energy suppliers comprises the following actions:

1. A call for suppliers to voluntarily stop the practice of forced prepayment switching as the answer to households struggling to pay bills and make greater effort to help the most vulnerable.
2. Request of the release of supplier data on the number of warrant applications they have made to forcibly enter homes to install meters.
3. Urgent publication of a list of supplier redemption rates for the Energy Bills Support Scheme vouchers – showing who is meeting their responsibilities and who needs to do more.
4. The launch of a Government public information campaign reminding and informing eligible consumers to redeem their Energy Bills Support Scheme vouchers and how to do so. This will be through both advertising and direct communication channels, targeting the most vulnerable and those most likely not to have redeemed vouchers.
5. Coordination with Ofgem ensure they take a more robust approach to the protection of vulnerable customers and conduct a review to make sure suppliers are complying with rules.

The five-point plan forms part of a wider effort to ensure that energy users are protected at this challenging time and the Government is exploring longer term measures to address this.