Urgent action is needed from the Government, Ofgem and energy
suppliers to help households facing an apparently inevitable new
winter crisis, a cross-party committee of MPs says today.
A report from the Energy Security and Net Zero
Committee follows a quick inquiry on how the Government
and energy firms can best prepare for the coming months. MPs
heard of the dangerous coping measures and sacrifices some people
had to make to heat their homes last year and how excess winter
deaths caused by living in cold, damp homes increased by nearly
50% to more than 4,700.
While recognising the unprecedented levels of support provided
last year, the Committee is concerned that no new specific
financial assistance has yet been announced and warns that the
challenge of coping with continuing high energy costs this winter
will be exacerbated by wider cost of living pressures and
accumulated energy debt.
Today’s report calls for a package of targeted support, by
Government, for vulnerable groups and for a more proactive and
more empathetic approach to customer service by energy companies.
With £440 million intended for energy bills support last year
returned to the Treasury, the Committee says the Government must
ensure that all households who missed out on the Energy Bills
Support Scheme receive their payment with immediate effect.
To further support the most vulnerable, the Committee sets out
how existing mechanisms could be used to deliver help and urges
the Government to work to extend the Warm Home Discount and,
along with energy suppliers, to consider implementing a form of
social tariff.
The report also calls for a revised Cold Weather Payment to be
provided ahead of forecast cold events and for the Government to
ensure local authorities share best practice in how to deliver
the Household Support Fund.
Consumer organisations told the Committee that those in the
greatest need of financial support are often also in need of more
help in identifying where they might qualify. With customer
satisfaction rates disappointingly low, the report recommends
that Ofgem takes steps to ensure that all customers, and
particularly the most vulnerable, are given more time, attention
and support from their energy suppliers.
Ofgem and energy companies also need to adopt a more proactive
culture in improving industry consumer standards, and suppliers
should be required to provide a priority phoneline for charities
and consumer organisations to access support for their clients,
the report adds.
Further recommendations include working to replace the current
"unfair and regressive standing charge" structure and the
acceleration of the smart meter rollout.
, Chair of the ESNZ
Committee, said:
“The nights are now drawing in and many of our most
vulnerable people will be haunted by harrowing memories of the
relentless sacrifices they were forced into last year, just to
keep their heads above water in the face of exorbitant energy
costs. In fact one in four carry energy debts from last winter.
With the challenge this winter threatening to be even worse, an
announcement of support from the Government is long overdue. The
mechanisms to provide assistance are already in place – the
Government and energy firms must now get on and act to reassure
struggling households that they are not being left to fend for
themselves.
While financial support will be vital, there also needs to be
a drastic improvement in customer service and the empathy shown
by energy companies to those who are going through tough times.
If these firms don’t improve, Ofgem must be less backwards in
coming forward and give them a good shake to ensure they are
working in the best interests of their customers this
winter.
"The report noted the 'unfair and regressive standing
charges’ should go. After all you don't pay a standing charge to
buy petrol, you just pay for what you use. We also saw the
wisdom in the need for a social tariff for those hardest hit and
anyone with a modicum of empathy can see why."
A full list of conclusions and recommendations is on page 11 of
the report.
