Utility Week

20 | 2ND - 8TH FEBRUARY 2018 | UTILITY WEEK Customers Analysis C harities including Age UK and Chris- tians Against Poverty say they fear a health crisis is imminent, as a poll for comparison website Comparethemarket.com last month found 20 per cent of elderly peo- ple are eating less to offset high energy bills. Energy bills increased by an average of 14 per cent last year, with customers on stand- ard variable tariffs (SVTs) paying the most. Over a million told the poll they will struggle to pay their bills this winter, and 1.3 million (11 per cent) said they could not afford any increase. Twelve per cent said their health had already suffered because they limit the amount of heating they use, and more than a third (38 per cent) ration their energy because of the cost, according to the poll of 2,000 respondents aged 65 or over. The survey also found people aged 65-plus who changed supplier in December saved an average of £200 – but older peo- ple switch less than all other demographics, which, according to the survey, is because they get confused or aren't online. The problem is that the human body starts to lose its ability to regulate tempera- ture with age – in a healthy person it starts around 75, but it's earlier for those with medical conditions. That is why hypothermia is a major risk for the old – they need more external heat to keep warm than a younger person and are unable to recognise if they are becoming dangerously cold. That is why people die of cold in winter, and that is why fuel poverty among the older generation is so important. Age UK's website states that one older person dies from the cold every seven minutes during the winter. Ofgem said last month that an energy price cap could be implemented by next Christmas, but 56 per cent of respondents to the Comparethemarket survey said they did not believe this would reduce their bills. There were fears the cap would be set too high, or that suppliers would make up the reduction in their profits through hidden charges. In response, Dermot Nolan, chief execu- tive of Ofgem, told a parliamentary select committee he accepted that the regulator "should have done better with vulnerable customers". Since 2001, the government has had a legal duty to set out policies that will, as far as possible, eradicate fuel poverty. Since then a variety of schemes and measures have been introduced, but the number of house- holds assessed to be in fuel poverty has not fallen in line with the targets. At a recent fuel poverty summit the agenda included discussion around meas- ures to help customers move away from prepayment meters, and extra support for those struggling to heat their homes. Min- isters called on energy companies to make data publicly available to ensure issues fac- ing vulnerable customers can be tracked and managed. In turn, suppliers agreed to report back to ministers on the progress of helping those who are struggling with their energy bills. The outcomes of the summit will feed into the forthcoming fuel poverty strategy, which has just closed for consultation. But what exactly are companies doing to tackle this important issue right now? EDF In order to identify those in need, EDF says it trains its customer contact teams to iden- tify where extra help may be required, which includes tariff advice, energy efficiency advice, referrals to partners who can provide wider financial capability help, or a benefits health check. When discussing a repayment scheme, it says its teams always consider a customer's ability to pay to ensure the amounts agreed are appropriate. The identification process includes add- ing the customer to the priority services reg- ister, which provides additional services to customers, including different bill formats, gas safety checks, password schemes, and a direct number for a specialist help team. In 2003 EDF was the first energy company to introduce a fund that customers can apply to for a grant to help li them out of arrears and the debt cycle. Last year, EDF says it made targeted out- bound calls to identified groups of customers to offer help including tariff advice. One of the targeted groups was those on SVTs. This year the company introduced a Safeguard Assist Tariff, aimed at customers entitled to receive the Warm Home Discount (WHD) payment and on SVTs, to move them to a better rate from February onwards. EDF also has an eco-scheme to provide low cost insulation, (which can be free, based on eligibility criteria). Ovo The Ovo Energy Fund exists as part of being an obligated supplier under the WHD scheme. Ovo also partners with the Centre for Sustainable Energy, which operates a dedicated energy advice line for its custom- ers and offers debt charity referrals to cus- tomers who need extra support. A spokesperson says: "We aim to ensure all of our customers have the information they need to decide which tariff is best for them. To help vulnerable customers, we rolled out vulnerability identification train- ing in 2017 to identify if customers need sup- port, for financial or other reasons. We also changed our 'discretionary credit' policy in 2017 to ensure PAYG customers with financial vulnerability are supported through periods of financial instability. Following Ofgem's The cold light of day This week it emerged that two million pensioners are struggling to pay the bills – and eat – because of high energy costs. So what does the industry plan to do about it? Alice Cooke reports.

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