Energy suppliers could limit the amount of funding available this winter to households living in fuel poverty.
Vulnerable families are currently eligible for cheaper ‘social tariffs’ from energy suppliers; however these will be replaced by a Warm Home Discount scheme this winter. This new initiative, which will also be managed by energy suppliers, will provide households in fuel poverty with £120 towards their energy bills.
The BBC however has raised concerns this week that not all households who should receive this funding will get it. This is because some of the eligibility criteria for the Warm Home Discount scheme will be left up to the energy suppliers’ discretion which could mean some struggling households miss out.
Under the scheme, pensioners who currently receive a credit towards their heating costs will be given the £120; however other households who are classed as fuel poor should also be given the cash according to the government. The decision to help these other households will be left to the suppliers, and how many they will help will depend on how many customers they have.
Consumer watchdog Which? spoke to all of the UKs ‘Big Six’ energy suppliers apart from E.ON, to find out how many vulnerable customers were going to allocate funding to under the Warm Home Discount scheme.
In response, nPower said it was planning to assist around 90,000 of its customers, which included pensioners and those on certain benefits. British Gas planned to help all its vulnerable customers, including those who were on an annual income lower than £16,190 and spending 10% or more on their gas and electricity bills, pensioners and customers who were claiming specific benefits.
Scottish and Southern Energy said it did not know how many customers were eligible yet as it was too early, however it currently has around 210,000 customers on its social tariff Energyplus. Scottish Power was also unsure, but said all customers receiving certain benefits would definitely be helped, but it will put a cap on the number who can qualify. EDF Energy is set to help around 45,000 of its customers and E.ON is yet to respond.
James Tallack from Which? said, ‘With social tariff being phased out in favour of the Warm Home Discount, it’s essential that all of the fuel poor get the help they need under the new programme.’
He added, ‘If you qualified for your suppliers’ social tariff, you should be eligible for the Warm Home Discount. While it’s encouraging to see companies like British Gas giving reassurances that no eligible customer will lose out, with over six million households in fuel poverty this issue is too important to leave to the discretion of individual suppliers.’
British Gas’ managing director, Ian Peters said in an interview with the BBC that ‘no eligible customer’ will be left short. He said, ‘If they apply before the end of January for the first year, then I would have every confidence that they would get £120. I will guarantee we’ll pay them.’
Consumer champion, Consumer Focus also welcomed British Gas’ move but echoed Which?’s call for the other ‘Big Six’ suppliers to do more.
