IS TOPPING UP TIPPING YOU OVER THE FINANCIAL EDGE?
Are Pre-Payment meters taking the energy out of your life?
Help recover your balance
As the Prime Minister pledges to cut energy bills and introduces his four point plan, many people will still struggle to pay their fuel bills this winter. Lots of people will find themselves in fuel debt and could be forced to have a Pre-Payment meter installed. Letters will be sent to millions of households informing them of the Government’s four point plan, including information about cheaper tariffs, free insulation and changing billing methods. Local advisors welcome these initiatives but fear they will have little impact on those using Pre-Payment meters.
People paying for their energy using a Pre-Payment meter don’t have many options to shop around for cheaper tariffs or to swop their energy supplier. However the national watchdog, Consumer Focus, has agreed ‘5 Key Principles’ with the ‘big 6’ energy suppliers to improve the way Pre-Payment meters work.
These ‘5 Key Principles’ should offer more protection for vulnerable people and local advice workers are determined to help people understand their rights. You can find out where to get free and independent face-to-face advice about fuel bills or other money worries at: www.divabradford.org.uk/advice-services [Note to editors: details of two local face-to-face energy advice projects are given in the notes below]
Advice workers in Bradford District support thousands of people with debt problems, including fuel debts and Pre-Payment meters. They are helping increasing numbers of fuel poor clients who are in fuel debt and paying disproportionate amounts when using a Pre-Payment meter for their energy supply. Alex Bohdanowicz, Specialist Team Manager Bradford and Airedale Citizens Advice Bureau reported that in the first half of this year they have had a 20% increase of clients with fuel debt enquiries. Alex expects this figure to increase over the coming winter months.
Alex states that, “People are telling us that they are very worried about how they will manage this winter. Those on low income are regularly paying more than 10% of their household income in fuel bills; in many cases this is more like 30%”.
A household is considered to be in ‘fuel poverty’ if they spend more than 10% of their net income on heating and hot water. In 2009 it was estimated that 55,500 households in Bradford were likely to be living in fuel poverty. This figure is expected to increase with winter fast approaching and recent energy price rises.
While local advisors welcome the four point plan set out by the Government, in times of an economic downturn it is likely to be the poorest and most vulnerable who are hit the hardest. Food or heating is the choice many poor and vulnerable people have to make. Local advisors are monitoring how well the ‘Big 6’ suppliers are using the ‘5 key principles’ with vulnerable people and can help people struggling to manage.
Fuel bills have risen to £1,345 a year for the average household – double the £740 of five years ago. Electricity bills rose by 30 per cent in real terms between 2000 and 2010, gas bills jumped 78 per cent. In England
- ENDS -
Editors Notes:
For information contact: Aysha Chetwood, Partnership Support Worker, Advice Network & Training Partnership (Monday-Thursday)
Mob: 079680 469 42 | Office: 01274 597 743 |
Email: ayshac@antp.org.uk Fax: 01274 921352
If you need to contact us on Friday please contact:
Nick Hodgkinson, Programme Manager, Advice Network & Training Partnership (Bradford & District) |
Tel: 01274 597743 | Mob: 07931 931092 | Fax: 01274 921352 |nickh@antp.org.uk
Please note the above numbers are not for the public!
How to find local face to face advice about fuel debt (For Public use)
Energy Advice Service - Promoting affordable energy for all
Free, Independent, Confidential Advice on fuel debt, disconnection, problems with energy suppliers and energy awareness
Contact: Telephone: Bradford and Shipley - 01274 758042 (voicemail message only). If you live in Keighley please call - 01535 612433
Email: energyadvice@bradfordcab.com
Text Your NAME and NUMBER to 07954 969 188 (Standard text message rate may apply). The energy advice service aims to contact you within 5 working days
EnergyWise Project, at the Family Action Advice Centre: 01274 577571
Free advice on: fuel debt; paying for fuel; domestic energy; damp & condensation; grants for heating and insulation; warm front grants; community warmth schemes; energy trust grants; free energy saving products. Energy audits, change tariffs, wipe off debt, etc.
www.divabradford.org.uk/advice-services - Independent advice centres give free, confidential, independent, impartial and quality assured advice direct to the public. Advisers can help with a range of issues including fuel debt. So the easiest way to find the right session for you is to go online. This website allows you to search for advice sessions by selecting the type of advice needed and the postcode/s where you can attend. It gives you details of the location, day, time and frequency of each session, the name of the advice service provider, any restrictions on the types of client served, the types of advice provided and how to access the session (eg open door or appointment)
National Telephone Helplines and Websites
National Debt Line: National Debtline: 0808 808 4000 www.nationaldebtline.co.uk
Consumer Direct: 08454 04 05 06 or fill in an online form: www.direct.gov.uk
Consumer Focus approved energy suppliers comparison websites: www.consumerfocus.org.uk/energy/confidence-code
References:
1) In 2009 it was estimated that 55,500 households in Bradford were likely to be living in fuel poverty in August 2009: Bradford Joint Strategic Needs Assessment – November 2010
2) In England
3) The ‘big 6’ energy companies are: British Gas, Npower, Scottish Power, Eon, EDF Energy and SSE
4) Fuel bills have risen to £1,345 a year for the average household – double the £740 of five years ago. Electricity bills rose by 30 per cent in real terms between 2000 and 2010, while gas bills jumped 78 per cent: Mail Online, Tuesday 18/10/11, Tim Shipman
The 5 Key Principles: the six largest energy suppliers in the UK
- Use their own vulnerability checklist, as part of a comprehensive assessment process, to help determine the household’s circumstances before any new PPMs are force fitted or installed for debt related reasons. If PPM installation is not appropriate, the supplier’s representative will walk away and the customer will be offered alternative payment methods.
2. Take into account changes in a household’s circumstances. If the supplier agrees that it is no longer safe and practicable for the household to have a PPM, then the supplier will be prepared to exchange the meter without levying a removal charge. In cases of vulnerability, the supplier will not charge the customer for meter exchange.
3. Extend the ‘friendly credit’ period on all electricity PPMs, where practicable, to overnight and over Christmas and New Year public holidays.
4. If the pre-installation check reveals evidence of vulnerability and it is still considered safe and practicable to fit a PPM, where appropriate the supplier will commit to carrying out a package of support that includes:
- PPM tariff advice, including social tariffs where applicable;
· energy efficiency information and information on entitlement to energy efficiency measures; and
- a benefit check or referral/signpost to an organisation that can provide a benefits check.
5. Commit to improving communication with PPM customers.
The Governments 4 point plan:
- Letters to be sent to eight million consumers who could save £100 by switching from the quarterly credit billing system
- Government letters to four million vulnerable households - paid for by energy firms - informing them they were eligible for free insulation
- A campaign to encourage people to consider switching supplier and a commitment to provide energy use data in electronic form to aid making comparisons
- A report by Ofgem before the end of the year recommending ways to improve conduct and transparency in the industry
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