Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Accepted
Ensure administrative barriers do not hinder timely energy support for prepayment meter customers.
Recommendation
Prepayment meter customers pay for their energy in advance by topping up a meter with a smart card, ‘key’ or cash token. Those on prepayment meters are typically on more expensive energy tariffs due to the cost of the systems used to run the meters.23 These households also tend to be poorer and are more likely to be in arrears on their energy 17 Qq 3, 148, 158 18 Qq 147, 172; Department for Energy Security and Net Zero and Department for Business Energy & Industrial Strategy, 900,000 more households to benefit from £400 of government energy bill support, 27 February 2023 19 Q 188, GOV.UK, Apply for alternative fuel bill support if you do not get it automatically 20 EBS0003, Countryside Alliance, Energy Bills Support, 23 February 2023 21 Qq 153, 155 22 Q 177; C&AG’s Report, paras 11, 2.7 23 Ofgem, Energy regulator outlines next steps on forced Prepayment Meter (PPM) installations, 21 February 2023; Committee of Public Accounts, Regulation of energy suppliers, Twenty-Fifth Report of Session 2022–23, HC 41, 13 November 2022 Energy bills support 13 bills, and can be unaware of national and local initiatives to reduce fuel poverty.24 We examined the Regulation of Energy Suppliers in November 2022 and concluded that it was unacceptable that many vulnerable customers, including those on prepayment meters, faced extra challenges accessing benefits designed to help people with their energy bills. At the time of our previous evidence session, the Department was unable to explain how it would ensure that all customers who used prepayment meters would receive their energy support. We recommended that the Department needed to ensure that administrative issues did not prevent support being provided to these households in a timely manner.25
Government Response Summary
The government agrees that the recommendation has been implemented, explaining it closely monitored Energy Bills Support Scheme voucher payments, published data, and conducted focused communications and a media campaign to improve redemption rates for prepayment meter customers from 76% to 85%.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The government has closely monitored Energy Bills Support Scheme (EBSS) voucher payments to traditional prepayment meter customers in Great Britain and published data regularly. Supplier data has provided detailed geographical understanding of areas with low voucher up-take. Lowest redemption is seen in urban areas, with 9 out of the 10 local authority areas with lowest up-take in London. Postcode sector level data provides insight into the types of households likely to be found in each area. A higher proportion of customers with unredeemed vouchers live in socially rented terraced properties or flats, or in primarily ethnic and multicultural areas. 2.3 This understanding enabled focused communications efforts on areas and at demographics with most impact. Government and supplier communications campaigns have encouraged voucher up-take throughout delivery. 2.4 A further, coordinated media campaign was launched at the end of May. ‘National claim your voucher day’ was supported by suppliers, charities and consumer groups. Voucher redemption rates improved from 76% at the end of January 2023 to 85% at the end of May 2023. 2.5 In Northern Ireland, support was delivered through a single cash payment, due to the high usage of heating oil. Thus, scheme design and the nature of the electricity market meant that voucher redemption has been less of an issue and rates rapidly rose to in excess of 90% shortly after launch. On that basis, additional specific analysis has not been conducted.