Utility Week

UTILITY WEEK | SEPTEMBER 2021 | 11 Policy & Regulation Talking Points… "Energy suppliers are going above and beyond to help indebted customers this winter." Comment Audrey Gallacher Deputy chief executive, Energy UK "It is disappointing that only now – after being promised the (hydrogen) strategy in November last year – are the necessary consultations being launched on how to overcome funding issues and how to defi ne 'low carbon' hydrogen. These critical issues should have been ironed out in advance." Philip Dunne MP, chairman, Environmental Audit Committee "The IPCC report is crystal clear – we're running out of time on the 1.5C target. The impacts of the climate crisis are already with us – fl ooding, heatwaves and wildfi res have all been made more likely, and these and other threats will only multiply and worsen in future." Luke Murphy, head of Environmental Justice Commission, Institute for Public Policy Research "[Defra's draft SPS] presents a long list of issues which, eff ectively, are left to Ofwat to balance off alongside its statutory duties. This does not seem...useful as guidance for Ofwat." Darren Rice, head of policy and regulation, Anglian Water Quote, unquote P redicting the next twists and turns in the pandemic story, in which we've all been unwilling extras for the past 15 months is evidently a hazardous occupa- tion. One unfortunate certainty is that mil- lions of households will be dealing with the • nancial consequences of the pandemic for some time to come. Some have already lost their jobs while others will be employed in sectors where the outlook remains precarious. It's a sobering thought that we haven't necessarily seen the full impact yet and, as government support programmes like furlough are withdrawn, we will • nd out how much these have masked or delayed the full consequences. Additionally, many will be • nding them- selves in debt di€ culties for the • rst time, along with those for whom this is sadly a more familiar situation. Energy bills won't be the only payment that many customers struggle with this winter but they are clearly one of the most important. As an industry, we're acutely aware that higher demand on top of rising prices and existing or underlying • nancial di€ culties is a worrying combination. Wholesale prices continue to rise steeply – the biggest part of the bill and yet o… en governed by global factors over which retailers have no control – and these are already feeding through to • xed deals and the price†cap. It's in recognition of these upcoming challenges that so many retailers last month signed up to new voluntary winter commit- ments to support their customers. These go above and beyond existing obligations for licensed suppliers and also build on additional measures to support customers in need, which were agreed with the govern- ment last year at the start of the pandemic. They demonstrate a desire not only to sup- port their customers but to try and make the existence of that support known and easily accessible to as many as possible. We know customers can be either una- ware of the help that's available or hesitant to contact those they owe money to. That's why some retailers partner with debt chari- ties and always encourage customers to seek help rather than ignore the problem. While virtually nobody gets disconnected these days, the fear of that happening will be an unnecessary worry to some when a repayment plan or some other way of pro- viding leeway would provide much needed reassurance. We can do more, but the sector deserves some credit for the help it has already provided and for committing to do more despite facing its own challenges, through this and of course the Vulnerability Commitment. As lockdown • rst hit last March, suppliers dealt with an initial surge of calls for assistance and responded accordingly. Since then, they have supplied hundreds of millions of pounds of support to hundreds of thousands of customers. This is in addition to the existing £1 billion a year provided in support through the Warm Homes Discount and the Energy Company Obligation. It would also be helpful for these com- mitments to be seen in the context of the current situation. Retailers are doing this while the vast majority of them are losing money, rather than what is being portrayed in some quarters – an outdated view that sadly seemed to contaminate the govern- ment's recent government retail strategy. Whatever the perception, our sector will continue to work hard to support our cus- tomers as much as possible and to let them know that help and support is available through the challenges of the coming winter.

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