Ofgem to encourage UK households not to lose out on fuel aid

Energy firms have come under fire from regulator Ofgem and consumer champion Which? for the way they have dealt with the Warm Home Discount Scheme, giving low income households as little protection from the increasing fuel bills as possible.

Six energy companies, EDF, npower, E.ON, Scottish and Southern Energy, British Gas and Scottish Power have all been relishing huge increases in profit (£125 from the typical standard tariff), which could be due to the rise in fuel bill prices. Ofgem has stated that from October the average wholesale price will cost £605 per customer, compared to £570 in June.

EDF have announced a price increase for gas and electricity, with gas rising 15.4% and electricity 4.5% in November.

For those wishing to apply for the Warm Home Discount Scheme, it could be a long wait. According to the Financial Mail, energy companies are limiting the money they’re prepared to pay out under the scheme. Bar a group of 6,000 pensioners in receipt of pension credit, those who believe they’re eligible to apply under the scheme will have to wait and hope they are high enough up the queue to benefit.

The first set of payments under the scheme are due to be paid to households at the beginning of next year, giving the Government and Ofgem ample time to protest and demand all of those who are eligible for the £120 rebate should receive it.

Not only have these companies been feeling the heat from Ofgem, Which? have also been putting pressure on them for their disregard of informing customers of their cheapest tariffs.

Which? found that in nearly a third of cases, six major energy suppliers failed to inform and offer callers information on their cheapest tariffs. Of all the firms who were part of this investigation, Southern Electric came out the worst with only three out of the 12 calls made by Which? mentioning the cheapest tariff.

Ofgem are currently working on tariff reform proposals to encourage energy suppliers to simplify their tariffs.