In order to support customers amid the energy crisis, British Gas will donate 10% of all profits to the Energy Support Fund with an immediate £12 million donation to boost the fund – double the previous contribution.
This makes it the biggest voluntary aid package offered by a UK energy supplier to its customer, British Gas said.
With it set to be active for the duration of the energy crisis, backdated to the start of 2022, it will help financially vulnerable customers who are struggling to pay bills this winter as energy prices soar.
The British Gas Energy Support Fund was created in late 2021 with an initial £2 million investment in response to the cost-of-living crisis with customers in fuel poverty and with less than £1,000 in savings eligible to apply for a grant.
Through the fund British Gas customers have been provided with grants between £250 and £750 to help pay towards their energy bills with an average grant size of £550.
“The current cost of living crisis requires all of us to think differently,” said Chris O’Shea, chief executive of Centrica, parent company of British Gas Energy. “As a responsible business we want to do more to support our customers during this difficult time.
“Committing 10% of our profits for the duration of the energy crisis will mean we can target help at those who need it the most. This increased investment in supporting our customers adds to the financial support and advice we already offer and ensures more grants will be available as we go into this winter.”
British Gas is the latest energy firm to provide support for its customers. EDF Energy introduced new support measures this week specifically created to help vulnerable customers and those most in need amid the energy crisis.
EDF stated it was in the process in contacting over 100,000 of its most vulnerable customers in order to outline the support packages available such as its smart prepayment meters and a new Fresh Start campaign
The smart meters allow customers to top up energy from anywhere and track usage helping to beat the price cap by up to £100. The Fresh Start Campaign is designed to support those with existing debt who are not able to repay the costs.
EDF is also helping customers to have more control over their energy usage with its free Energy Hub. The platform provides real time insights into energy usage and show how customers can create savings.
This comes off the back of a difficult 2021 in which the firm saw its EBITDA fall to -£21million in 2021 from £712 million in 2020, and its UK EBIT to -£1.7 billion from -£862 million.
“As a business we are facing many challenges due to the rise in wholesale energy costs, but our main priority remains our customers,” said Philippe Commaret, managing director for customers at EDF. “We are aware these new measures won’t solve these issues but hope that they can provide the vital support needed for the most vulnerable.
“This is why we see it as our responsibility to reach out to customers to ensure that those that need help most are aware of all of the options and packages available to them. Our free Energy Hub, for example, could provide a customer with the guidance they need to start their journey towards cutting down their bills.”