UK suppliers are scrapping energy assistance programmes

After over a decade of ensuring that pensioners do not have to fear the cold, UK fuel suppliers are quietly cutting the aid programmes that keep seniors warm during the winters. For those that rely on these critical energy assistance programmes, a cold winter could become a dangerous reality.

E.ON Cuts StayWarm

E.ON announced in late 2013 that it would be cutting its long running StayWarm programme. The announcement was quite a shock to the thousands of pensioners that relied on the fixed price scheme to cap their utility and fuel bills for many years.

The cuts were made in part to comply with new regulations imposed by regulator Ofgem. An industry-wide billing simplification initiative is at the heart of the new changes. While there were many reason for the changes to be made, the main one was that regulators want a customer’s bills to be easier to read, and they argue that multiple tariffs can make them more confusing.

In the case of E.ON, some pensioners have been provided with the opportunity to convert to a similar energy assistance programme. EnergyPlan is supposed to provide a similar level of aid to those who struggle to pay rising heating bills in the winter. For affected pensioners though, there is a palpable fear of being quite literally left out in the cold.

npower is Spreading the Warmth

Energy giant npower has also modified the programmes that they offer customers. The npower Spreading Warmth scheme has been terminated in favour of a newer tariff that is intended to still provide a fixed price to those who cannot afford spikes in their monthly energy bills.

The npower Online Price Fix is scheduled to run through February 2015. Even if you lose the protection of the Spreading Warmth programme, you may still benefit from a fixed monthly utility bill with the Online Price Fix.

Full Savings Not Being Provided from EDF

Some suppliers also state that all the savings from many of the schemes will not be reflected in their customers accounts. As an example, EDF Energy claims that the rates they charge for energy bills are lower than any possible savings that can be provided to individuals. So this is how they justify that not passing along any additional government discounts or programmes.

However, this is under review. Individuals that have either a two or four year contract with the company should closely monitor their accounts to ensure they are receiving as many savings as possible. They can also explore all the other options they have. Read EDF Energy schemes and assistance.

Electricity Market Reform

The changes brought about by the Electricity Market Reform (EMR) legislation is intended to make it easier for customers to compare bills and identify opportunities to find the lowest possible prices. The ability to do this will benefit many people, including those facing poverty. At the end of the day, greater transparency should be a valuable asset for the average UK household.

On the industry side, the purpose of the EMR legislation is to balance the need for increased load bearing during peak energy usage with the focus on utilising more renewable energy. Both electricity and gas producers are shunning coal for wind, solar and natural gas power plants. While natural gas is cheap and predictable, wind and solar power tend to peak during the day but cannot keep up with the needs of the public at night.

So how does electricity market reform require that energy suppliers reduce their aid programmes? Frankly we are scratching our heads on this one.