Energy suppliers leaving households in the cold warns think tank

Ahead of Ofgem’s announcement on the Energy Price Cap, Wales’ most influential think-tank, the Bevan Foundation, warns that people will go cold this winter.

As the cost of gas and electricity has soared, the number of people struggling to make ends meet has increased dramatically. With Ofgem expected to announce that prices will increase again this winter, there are growing concerns about how people will cope, with some facing another winter of having to choose between heating and eating.

To help people struggling with their gas or electricity bills, energy suppliers have developed schemes to help. These include small grants, writing off debt and providing items such as heated blankets. New research by the Bevan Foundation reveals that this support is not getting to everyone that needs it.

Joel Davies, Policy and Research Officer at the Bevan Foundation explained:

“Energy supplier schemes can and do make a real difference to people struggling financially, but we have found that some people are missing out on this vital lifeline. With Ofgem set to announce that prices will increase again this winter, it is important to make sure that low-income households are receiving all the help they can get.”

The Foundation found that it can be hard to find out about the help that energy companies offer, and that applying to the schemes is not always easy.  Application deadlines are sometimes brought forward as suppliers have used their budget, eligibility criteria can be unclear and dealing with call centres is often a real challenge.  Even if someone does get help, it is not always enough to make a real difference.  Too often, people are left with nowhere to turn, just because they’ve fallen into energy arrears at the wrong time.

The Bevan Foundation’s Head of Policy (Poverty), Dr Steffan Evans raised concerns about the impact of these issues on Welsh communities:

“People who should be getting help from energy suppliers are sometimes being left short and are forced to turn for help elsewhere. This is putting extra pressure on services such as foodbanks and advice workers which are already stretched. As we head into what is likely to be another difficult winter, energy suppliers must up their game to make sure that their support schemes reach everyone who needs them.”

The Bevan Foundation outlines the steps that should be taken to improve the current system, such as requiring energy suppliers to make their schemes more accessible and easier to apply for. Looking to the longer term, the Foundation says that action is needed to improve the help provided by suppliers and to make sure that the UK Government ensures that everyone has enough to cover the cost of everyday essentials such as energy. The Welsh Government needs to step up its investment in the energy efficiency of Wales’ housing stock, and energy suppliers, Ofgem and the UK Government must work together to improve the affordability of energy prices for low-income households.

Help with energy bills – experiences in Wales