Utility Week

UTILITY WEEK | NOVEMBER 2021 | 25 Customers Talking Points… "There will be pressure for an early revision of the rates to ensure supplier costs are covered and to reduce the likelihood of supplier failure this winter. If this happens we absolutely need to see additional support being provided to households who will struggle to bear the increased cost from energy this winter." Matthew Cole, chair of trustees, Fuel Bank Foundation "Despite progress made in recent years in terms of the way Ofwat and water companies listen to customers, decision-making power in the water sector is still heavily weighted in favour of the companies and regulators." Emma Clancy, CEO, CCW "We have some of the least effi cient housing in Europe. This has left the UK more exposed to the current soaring gas price than many other countries and we are wasting billions of pounds each year as heat escapes through leaky roofs, fl oors and ceilings." Adam Scorer, CEO, NEA Quote, unquote M illions of people are already starting to feel the pinch a er the energy price cap rose by almost £140/year for the average dual fuel customer on 1 October. But it could be set to get much worse. Analysts are forecasting that the price cap could rise by a staggering £400/year to £1,660, for an average household, next•April. This could leave many falling into debt with their supplier, unable to a- ord to top up their meter and potentially facing the grim choice between heating and eating. Earlier this year the government published propos- als to improve the Warm Home Discount scheme, but it should now urgently reassess these, and use the budget to put in place extra support from next April when price rises hit. We've found a household covered by the price cap, with average energy use and getting Warm Home Discount will likely be £193 worse o- between April 2022 to March 2023 compared to the same period in 2021-22. Households who shopped around for a good ‹ xed deal last year face an even bigger rise of•£330. The worst a- ected house- holds will be those that lose access to Warm Home Dis- count under the government's proposed changes to scheme eligibility. While the changes will see almost 800,000 more households getting the rebate overall, some who currently get it will lose access. Disabled peo- ple are disproportionately likely to be among the group who lose the Warm Home Discount. The combination of price rises and loss of the discount will see their overall costs rise by a massive £340 compared to the year before. If signi‹ cant price hikes kick in as expected next year, the level of support under Warm Home Discount, even with a small proposed increase to £150, won't be enough to achieve the scheme's aim of tackling fuel poverty. The government should urgently look at options avail- able to help people through the Warm Home Discount scheme, and propose changes in time for next year. We think three main changes should be considered: • An increase in the level of the rebate to reduce the impact of price rises on recipients next year. • An expansion in the number of households who receive Warm Home Discount. • An increase to the part of the scheme that allows energy companies to provide extra ‹ nancial assistance to people they identify in need of support. These one-o- changes would help reduce the risk of house- holds not being able to heat their homes. They would also mean small bill increases for other customers, although these would be low relative to the wider changes in prices. The news in numbers: 41% of customers in parts of England where water resources are most under pressure think water is plentiful where they live, according to CCW 44% of Brits polled by Ipsos Mori said investment in flood defences should be a priority £1.9m Amount dispersed to charities from the 12th round of Ofgem's energy redress scheme 55% of the 293,000 fuel poor homes with ratings of G or F in 2015 had been upgraded by 2020, according to the Committee on Fuel Poverty From bad to worse Comment Alexander Belsham-Harris Senior policy researcher, Citizens Advice From bad to Senior policy researcher, Citizens Advice

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