Ministers urged to do more as requests for energy bill assistance soar

Winter Woes

The call for more action comes after Citizens Advice Scotland revealed that demand for online energy bill advise soared in the last two months as the harsh winter weather bites.

According to the charity it has seen its online advice page for Grants and Benefits to aid with energy bill payments jump dramatically since September with a 136% increase in views. Figures continued to rise throughout December and as more cold weather is forecast the number of enquiries is set to continue to increase.

New data shows that an extra 32,000 Scotland households have fallen into extreme fuel poverty, adding to the already high figure of 613,000. With the Covid-19 pandemic and the economic fallout caused by the lockdowns, more households across the wider UK are struggling to pay their energy bills with potentially harmful consequences for energy suppliers.

“As the weather turned cold, increasing numbers of people checked our online advice for help paying their energy bills. This could be the tip of the iceberg, with Covid-19 potentially leading to an increase in fuel poverty as more people struggle to heat their homes.

‘As we look beyond Covid-19 and towards the huge challenge of net-zero, investing further in energy efficiency measures is a no brainer. It’s win-win, cutting bills and emissions at the same time. With the delayed COP 26 coming to Glasgow in 2021, now is the time to invest further,” said CAS Fair Markets spokeswoman Kate Morrison.

The Scottish Government predictions estimate that fuel poverty figures could rise further due to Covid-19, to 29%.

What can Energy Suppliers do?

Energy suppliers should keep track of customers struggling to pay their energy bills and offer them support where they can. The most vulnerable customers should be put on the Priority Service Register (PSR)

Also read: Add your Customers to the Priority Service Register with Dyball’s CRM

In response to the rising number of customers struggling with their energy bills the trade body, Energy UK launched a new campaign that encourages energy suppliers to meet a set of measures that go beyond Ofgem’s current licensing obligations.

Some of the countries largest suppliers have signed up and will see them introduce new customer service practices to provide better support for struggling bill payers.

The campaign was first announced in July 2020. It will fully launch on January 1^st, 2021, where an independent body will assess whether the signatory energy suppliers are compliant with the new Vulnerability Commitment.

Ofgem's new rules have also come into force to ensure that energy suppliers are supporting their customers.

Customers on prepayment meters will now have to receive emergency credit when required after data showed that 16% of prepaid customers are struggling to top up their meters.

Further Reading

Total number of Energy Bill payers in arrears climbs over 2 million, and Energy Suppliers criticised for poor customer service

Energy Suppliers join new Vulnerability Commitment

What does 2021 hold for the UK Energy Market?

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we've developed, we're supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.