Utility Week

26 | 14TH - 20TH DECEMBER 2018 | UTILITY WEEK Customers Analysis A s nights draw in and temperatures plummet, for many households across the UK the start of the winter period brings with it some very difficult decisions. The "heat or eat" dilemma represents a devastating choice for vulnerable custom- ers, and with a series of rising energy prices across the market it is likely that this winter will see many households forced to make this tough decision. While various schemes and initiatives are being rolled out to help bridge the fuel poverty gap, are energy sup- pliers really doing enough to ensure they are protecting their vulnerable customers? Last month (November), the Committee on Fuel Poverty released its latest annual report, which said overall progress on tack- ling fuel poor households is "stalling". The committee, established by the Department for Business, Energy and Industrial Strategy (BEIS), is tasked with monitoring the gov- ernment's progress on its 2015 fuel poverty strategy. The fuel poverty strategy includes a statu- tory fuel poverty target for "as many fuel poor households as reasonably practicable to achieve a minimum energy efficiency rating of a band C by 2030". It also has two interim milestones of band E by 2020 and band D by 2025. This phased approach follows the prin- ciple of prioritising assistance to those in the deepest levels of fuel poverty – "worst first". The committee estimates that £17.1 bil- lion of funding will be needed to implement the fuel poverty strategy compared with the £15.4 billion estimate in its 2017 annual report (see table). But as well as an increase in funding, the report also recommends bet- ter targeting on energy bill subsidies for low income and pensioner customers – such as the winter fuel payment (WFP) and Warm Home Discount schemes – to help those most at risk with their fuel costs. It is evident that failing to address these issues could have fatal consequences for some vulnerable customers. Recent figures from the Office for National Statistics (ONS) outline a worrying spike in excess winter deaths during winter 2017/18, reaching the highest level in more than four decades. The provisional statistics for England and Wales estimate that there were more than 50,000 excess winter deaths during the period, up 45 per cent on the previous year's total. "Peaks like these are not unusual," says Nick Stripe, head of health analysis and life events at the ONS. "We have seen more than eight peaks during the last 40 years. "It is likely that last winter's increase was due to the predominant strain of flu, the effectiveness of the influenza vaccine and below-average winter temperatures." Preventable deaths However, responding to the report, National Energy Action (NEA) chief executive Adam Scorer labelled the figures "predictable, pre- ventable and shameful", noting that more than 15,000 of these deaths could be directly related to fuel poverty. Charity Age UK also has raised concerns over the potentially fatal combination of ill health, poor housing and high energy prices. "Last winter there were nearly 46,000 excess winter deaths among people aged 65 and over – a shocking 92 per cent of all excess deaths – equating to 379 older people a day. These distressing figures are now the highest we've seen in over 40 years," says Age UK charity director Caroline Abrahams. "A toxic cocktail of poor housing, high energy prices and ill health can make winter a dangerous time for many older people, and tragically it is the oldest and those who are the most vulnerable who particularly suffer the consequences." With recent research from comparethe- market.com warning that 93,000 house- holds in the UK could face a £200 increase in energy bills this winter, those affected are urged to change supplier to avoid being auto- matically switched to default tariffs during the last quarter of the year. But while energy switching is expected to reach record levels this year, there are still millions of customers who do not switch. So, what are energy sup- pliers doing to ensure these customers, oen the most vulnerable, are not paying over the odds for their energy? And with the big six all coming under fire for announcing price hikes this year, are the sector's biggest play- ers doing enough to protect customers? Supplying energy to millions of homes across the country, British Gas has worked with NEA for more than 30 years in a bid to tackle fuel poverty. A company spokesperson insists: "We understand that affordability is an issue for our vulnerable customers. "Over the last five years [2013-17] we have spent more than £1.3 billion helping custom- ers in need, including voluntary and manda- tory contributions. "Last winter we met our government obli- gation for the Warm Home Discount scheme. We gave more than 290,000 families and 350,000 pensioners £140 to help pay winter bills." In addition to these energy subsidies, the company has funded the British Gas Energy Trust since 2004. The trust helps clear energy debts for customers who are struggling and pays for new energy-efficient appliances. It has provided more than £100 million-worth of support to people in fuel poverty regard- less of which energy supplier they are with. Similarly, energy supplier Eon says it has provided funding to more than 270,000 of its 4.3 million UK customers this year through Another deadly winter? For vulnerable households, debt and poverty can leave families unable to heat their homes. Nadine Buddoo looks at what energy suppliers are doing to help those most in need survive the winter. Funding required to deliver fuel poverty strategy (£ billion) 2020 2025 2030 Total Band E Milestone Band D Milestone Band C Milestone 2016 Report 1.8 5.6 12.4 19.8 2017 Report 0.9 3.0 11.5 15.4 2018 Report 1.3 3.9 11.9 17.1 Delta 2018-2017 0.4 0.9 0.4 1.7 Source: Committee on Fuel Poverty Annual Report 2018

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