Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Acknowledged
We also asked the Department how it would ensure that customers still benefited if they...
Conclusion
We also asked the Department how it would ensure that customers still benefited if they were not the direct billpayers, for example those who live in park homes or in rented accommodation where the rent included bills. The Department recognised that this was an issue that it needed to address, and that it had included some possible solutions as part of its consultation on the scheme. But it noted that the customers affected represented less than 1% of the market, and that it had a solution for ensuring that 99% of customers were able to benefit from the scheme. The Department committed to using all the levers available to it to make sure that customers were able to benefit from the support available to them, but that “we have to be realistic: we may not be able to guarantee that in every single case”. It told us that if it could not ensure that all customers received and all landlords passed on the £400 benefit then it would consider how to provide support for “the most- difficult-to-access-groups” through one of the other types of support available, such as the Household Support Fund.53 48 Qq 15–16, 21 49 Q 53; Department for Business, Energy & Industrial Strategy, Guidance: Heat networks, Updated 11 April 2022 50 Q 9; C&AG’s Report, para 2.6 51 GOV.UK, Millions of most vulnerable households will receive £1,200 of help with cost of living, May 2022; GOV. UK, Energy Bills Support Scheme explainer 52 Qq 9–10 53 Qq 9–11 16 Regulation of energy suppliers The future of the energy retail market
Government Response Summary
The government acknowledges the issue of ensuring all customers benefit from energy support, particularly those not direct billpayers, and states it is using all available levers to ensure vulnerable customers benefit, highlighting the EBSS and alternative funding.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2023 5.2 The government is committed to using all the levers available to it to make sure that vulnerable customers benefit from the energy support available to them. Under the Energy Bills Support Scheme (EBSS), households have started to receive £400 off their energy bills since October 2022, with the discount made in six instalments. This is being delivered via energy suppliers. 5.3 Ofgem provides the compliance and enforcement framework for EBSS and monitors energy suppliers’ compliance with this. Ofgem is acting swiftly to resolve any compliance concerns, in line with its duties under relevant supplier licence conditions, to ensure customers are receiving what they are entitled to. 5.4 Suppliers have confirmed that vouchers have been sent to all two million customers with traditional prepayment meters (PPMs). The department is urging consumers to redeem vouchers via a communications campaign targeted specifically at traditional PPM users; this includes posters, social media posts and radio broadcasts to ethnic minority radio stations in different languages, as well as communications direct from suppliers to customers. 5.5 The government continues to monitor voucher redemption rates through supplier reporting and will work with suppliers to ensure they are taking action to contact those with unredeemed vouchers and to reissue lost vouchers. The government is also working with the Post Office, PayPoint, consumer groups and charities to ensure that they carry and transmit accurate information about EBSS. 5.6 Vulnerable customers who are not eligible for EBSS, due to not having a direct relationship with an electricity supplier, such as park home residents, may be eligible for the Alternative Funding announced in July 2022. The government is undertaking key work with a range of stakeholders to finalise the details regarding eligibility and process, to ensure payment this winter. 5.7 In addition, households continue to be supported by the Energy Price Guarantee (EPG). This government scheme will bring a typical household’s energy bill in Great Britain down to the equivalent of around £2,500 per year (for the period of 6 months) from 1 October 2022 to the end of March 2023. The EPG will save a typical household in Great Britain £900 in the winter of 2022-23.