UTILITY WEEK | MARCH 2023 |
5
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When will we see action
onsocial tariff s?
A ordability and support for the most vulnerable in society have yet again
been the hot topics over the past month across the utilities sector.
Energy companies in particular have faced fresh public and political pressure
over the way they treat vulnerable customers. As we explore in depth over the
coming pages, this has been brought into even greater prominence by the explo-
sive allegations against contractors working for British Gas.
There is absolutely no defence for the comments and actions attributed to
Arvato Financial Services, whose operatives are depicted targeting the most
helpless in society with callous disregard. However, as Utilita's Bill Bullen points
out this episode shows the importance of a grown-up conversation about deal-
ing with debt. He also cites the risk that these allegations demonise prepay-
ment meters, which can o er customers a more - exible approach to managing
their€bills.
Hopefully the creation of the new Department for Energy Security and Net
Zero (see analysis on p16 & 17) will not impede these conversations. Bringing
down bills is at the heart of its mandate but it will have to work closely with the
Treasury and the Department for Work and Pensions to Ž nd a holistic response.
There appears to be little argument that what is needed is a more targeted
approach to bills support. Ofgem has now Ž rmly thrown its weight behind a
social tari and civil servants are understood to be engaging well with the indus-
try on how this could look in practice.
These o' cials should be applauded for the way they scaled up the various
bills support packages in 2022. However, a social tari will be a far more intri-
cate and delicate operation to implement – not least because a line will have to
be drawn somewhere. Given the complexity involved it is worrying that (at the
time if going to press) the government has not even launched a consultation on
what a social tari could look like in practice.
Meanwhile, in the water sector there has been shock at environment secre-
tary Thérèse Co ey's dismissive stance that a nationwide social tari will not
be a priority for her department. In the midst of a cost of living crisis this is a
bizarre stance to take, especially considering the level of work that has already
gone into the development of a single tari and the buy-in across the industry.
Given that Defra is not immune to U-turns, there is a clear need for the water
industry to make its feelings known to Co ey that she risks being on the wrong
side of history on this one.
James Wallin, editor, jameswallin@fav-house.com
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