A report from the Energy Security and Net Zero Committee has warned that “action is needed now” to support vulnerable customers this winter.
Members of parliament stated that urgent action is needed from the government, Ofgem and energy suppliers to help households facing an “inevitable new winter crisis”.
To help support vulnerable households, MPs are asking for a package of urgent support to be provided in addition to a more “empathetic approach to customer service by energy companies”, the report said.
The winter of 2022/23 was fraught with issues primarily due to the wholesale gas crisis and the impact it had on energy prices. To support households, the government introduced the Energy Prices Bill, which enshrined both the Energy Price Guarantee and Energy Bill Relief Scheme into law.
Despite the packages being in place, £440 million that was intended for energy bill support last year returned to the Treasury.
This was highlighted by the Committee who said: “The government must ensure that all households who missed out on the Energy Bills Support Scheme receive their payment with immediate effect.”
Existing mechanisms could support vulnerable households
The Committee highlighted a number of mechanisms that could provide further support to households this winter. This includes the Warm Home Discount, which the group believes the government should extend, and, along with energy suppliers, the implementation of a form of social tariff.
The economic benefit of a social tariff for vulnerable households was highlighted this week by Cornwall Insight, which released new analysis revealing a social tariff could reduce the energy bills of the UK’s poorest households by £330.
The report also called 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.
Alongside this, the Committee highlighted that both Ofgem and energy companies must do more to adopt a proactive culture in improving industry consumer standards. Suppliers should also be required to provide a priority phoneline for charities and consumer organisations to access support for their clients.
“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,” said Angus Brendan MacNeil MP, chair of the Committee.
“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,” MacNeil added.
“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.”
