Utility Week

The Month in Review Brearley Pinchbeck See interview with John Penrose MP, p8; and Energy Reset analysis, p12 F ebruary saw Ofgem announce a 54% increase in the price cap on default tariffs to £1,971, to come into effect in April. It was accompanied by a £9.1 billion package of support measures unveiled by the chancellor. This included a £200 rebate for all domestic electricity customers from October, to be recovered from bills in £40 instal- ments over five years from 2023, when the government expects global whole- sale gas prices to come down. There will also be an immediate £150 Council Tax rebate for house- holds in England living in properties in tax bands A to D. Meanwhile, eligibility for the Warm Home Discount will be extended by a further one-third so that three million vulnerable households will now ben- efit, as well as the planned £10 upliŒ to £150 from October. Action on supporting customers hit by bill shocks was largely welcomed but there was concern that these are short-term measures that fail to tackle the underlying causes of the gas crisis. Dame Clare Moriarty, chief executive, Citizens Advice, called the package a "strange, complicated and untargeted package of measures". She added: "It provides some relief for all households come April, but for people on low incomes who need it most there are far easier ways for the government to deliver support. If the government is serious about helping families facing the desperate choice between heating and eating it should use the benefits system. "Energy rebates are a 'buy now, pay later' solution which only provides temporary relief later this year." Meanwhile, Adam Scorer, chief executive of National Energy Action, described the government's response as "woefully inadequate". "Government had an exam ques- tion: how to protect the most vulner- able from a devastating rise in the cost of energy. While their plans are not without merit, they fail this test." He added: "We expect the govern- ment will have no choice but to return to the issue of spiralling fuel poverty and another price rise later this year. By then they'll be playing catch-up and great harm will already have been done. We need a more coherent plan if we are going to ensure the poorest can stay warm this winter and next." Michael Grubb, professor of energy and climate change, University Col- lege London, said: "Around half the cost increase that consumers face is from the knock-on impact on electric- ity bills. That's because, at present, gas plants set the price for all, even though they account for less than half our generation. "Beyond the short-term sticking plaster, we need more renewables to reduce our dependence on gas, and reform the system so that consum- ers can engage more directly with low-cost renewable energy generation. Consumers now are paying the price of the short-termism of the Treasury, particularly in blocking measures to improve household energy efficiency, and for the obstacles put in the way of onshore wind energy in particular." Adam John, senior reporter Concerns over 'sticking plaster' response to cost of living crisis Sector urges customers to seek support as water bills creep up Combined water and sewer- age bills for 2022/23 will rise by £7 to an average £419, while water-only bills will be on average £4 more from April. The average increase of 1.7% on combined water and sewerage bills is below infla- tion but prices vary across England and Wales, with some customers seeing a hike of up to 10% or a fall of 6%. South West bills remain the sector's highest at £472, down from £503 last year. Hafren Dyfrdwy's customers will pay the least this year at £334, up from £316 last year. The sector and its regula- tors have urged customers to seek support if they are struggling. Ofwat and CCW expressed concern that cus- tomer awareness was low about the assistance available. David Black, Ofwat interim chief executive, said he expects firms to play their part in supporting customers. "Research shows that only 15% of customers know about the financial help available to them, and just 3% are actu- ally getting financial support from their water company. "This isn't just about bills. Companies need to dem- onstrate they are providing great value with excellent service to customers while at the same time caring for our environment, responding to the real concern about their impact on our rivers. Custom- ers are looking for more from their water company and they should rise to meet those expectations." "There has been a lot of arbitrage opportunities to effectively gamble with consumers' money. Where there has been inappropriate behaviour, there should be redress." Stephen Fitzpatrick, chief executive, Ovo The Month in Review  The cost of living crisis will be discussed in detail at Utility Week's Customer Summit on 16 & 17 March. To fine out more go to https://event. utilityweek.co.uk/ customer/

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