Energy advice Rushmoor Voluntary Services - Glenn Greene, Adviser Monday December 13th 2021

Energy advice
Rushmoor Voluntary Services

Glenn Greene, Adviser
Monday December 13th 2021

Understanding your energy bills
       Standard Variable Tariff                            Fixed Rate Tariff

  •   Large numbers of consumers are on this tariff   •   Most people that switch opt for fixed term deals
      because they do not shop around for the best        at a set rate
      energy bills                                    •   Savings vary but are usually in the region of
  •   Loyalty is expensive                                £200-£300
                                                      •   Suppliers are not currently offering new clients
                                                          the low prices that these bills historically
                                                          attracted
                                                      •   For those not on a fixed term contract Ofgem
                                                          have fixed a price cap which is due for review in
                                                          April 2022
                                                      •   Price cap is reviewed every 6 months and
                                                          current indications are that it may increase by
                                                          up to £600 in April 2022

Understanding your energy bills
 •   When your fixed rate tariff expires your energy company will tell you
     the best tariff they have available to you. This may not be the best
     tariff for you!
 •   Beware of the E next to the readings on bills

The Energy Usage Cycle

                         High usage
      Average for year
                                      Low usage

Managing Energy Bills
        Prepayment meters                                  Monthly fixed direct debit

  •   Topped up at pay points in shops/garages or
      through apps and smart meters                   •   Covered by the banks Direct Debit Guarantee
  •   Emergency allowance if you run out of credit        scheme
  •   Actual cost is much higher than for credit      •   Customers pay a fixed monthly amount (~ 1/12
      account customers                                   of the estimated annual usage)
  •   Energy companies go to solution for customers   •   Customers need to understand the energy usage
      who get into debt                                   cycle
                                                      •   If a credit balance is built up customers can ask
                                                          for it to be returned – this is not recommended
                                                          as debt can be built up at times of higher usage
                                                      •   If usage is more than originally estimated the
                                                          monthly DD can be increased

Managing Energy Bills: Quarterly Billing
   •   Requires meter readings to be submitted to be accurate
   •   Payment is for 3 months at a time
   •   For a household on limited income saving to pay quarterly can be difficult to
       manage compared to paying monthly
   •   Not particularly popular with suppliers as payment is in arrears

Managing Energy Bills: Switching Suppliers
   •   In normal times we would recommend doing price comparisons every year
   •   At present switching is very difficult:
        • Suppliers will not take on new clients at a loss
        • Tariffs available are not capped and reflect current wholesale prices
        • If your tariff comes to an end your current supplier may offer a new fixed
            rate tariff. If you decline they should put you on their Standard Variable
            Tariff which is price capped

Managing Energy Bills: Benefits
     State Pensioners
     •   State pensioners receive a winter fuel allowance between £100 and £300 depending on age
         – this should be automatic but it is worth checking that it has been paid

     Warm Home discount
     •  £140 applied to your energy account sometime between October and March
     •  Automatically paid to recipients of the Guarantee Credit element of Pension Credit
     •  You are a low income household – list of suppliers participating is available at
        www.gov.uk/the-warm-home-discount-scheme/energy-suppliers

     Cold Weather Payment
     •   Only payable once temperatures are zero degrees celsius or below for 7 consecutive days
         between 1st November and 31st March
     •   Certain benefit recipients are eligible – check www.gov.uk/cold-weather-payment/eligibilty

Priority Services Register
  • The Priority Services Register gives extra help to vulnerable people who may
    benefit – for example, large print bills, more support during a power cut, meter
    readings
  • You could be classed as vulnerable if you:
       • are disabled or have a long-term health condition
       • are recovering from an injury
       • have mental health problems
       • don’t speak or read English well
       • have children under 5 or you are pregnant
       • have reached state pension age
  • If your situation isn’t listed you may still be able to sign up for other reasons – for
     example, if you have recently been bereaved or you have returned to living
     independently after some time in residential care

Why bother with a smart meter?
  •   Energy companies are keen to keep costs down through customers managing
      their accounts online
  •   These require customers to submit their meter readings online
  •   Smart meters mean that the customer never has to submit readings
  •   The monthly bills are then based on actual usage
  •   Type 2 smart meters can be transferred from one supplier to another
  •   You do not have to plug in the display for the smart meter to send off your
      readings
  •   You can use your display to help see when you are using a lot of energy giving
      you the opportunity to reduce usage/wastage

Managing energy debt – what are the options?
  It is important to ensure that the Energy Company is contacted if the client is
  having difficulty with payments
  • Check the bills – are they estimated readings?
  • Take current meter readings before contacting the company
  • Call the company and explain the problem

Managing energy debt – what are the options?
  •   The supplier has to help you come to a solution
  •   Disconnection is a last resort for suppliers and there are restrictions on
      disconnection between 1st October and 31st March for pensioners living alone
      or with children under 5
  •   The 6 major suppliers (BG, EDF, npower, E.on, Scottish Power and SSE) will not
      disconnect homes at any time if you have a disability, long term health
      problems, severe financial problems or young children living at home.
  •   Your supplier may require you to move onto a pre-payment meter. The debt
      will be taken at a set rate each week from the meter credit balance
  •   Citizens Advice have a Consumer Helpline with a specialist energy unit who
      will try and help. Call 0808 223 1133 (freephone)

Help when in financial hardship
  •   Hampshire CA manages the ”Energy Grant Scheme” which is open until March 31st 2022
       • Criteria apply and assessment is done by Citizens Advice (can be done over the
             telephone)
       • Value of grant is £147
       • Information (bills, bank statement, proof of address) and photograph of meters required
       • Pre-payment meter users will receive 3 vouchers of £49 to use when topping up
       • Credit meter users will receive one payment of £147 paid directly to the supplier
       • Referral through your local Citizens Advice office
  •   Some suppliers have funds that will give grants to help people in debt – details on CA site
  •   British Gas Energy Trust may also help non-BG customers
  •   Local grant checker on Simple Energy Advice site www.simpleenergyadvice.org.uk

Water Sure & Essentials Tariff
  For certain households Water Sure & the Essentials tariff give a reduction in water bills
  • Water Sure applicants must be receiving one of the following benefits or any tax credits
        • benefits are: Universal Credit/Housing benefit/Income support/Income related
            Employment and Support Allowance/Income based jobseekers allowance
                                                    AND
        • Child benefit for 3 or more children or have certain medical conditions
        • Less than £16k savings
                                                Alternatively
  • The Essentials Tariff is designed to help low income households
        • Household income is less than £21k
        • Reduction between 20% and 90% based on total household income
        • The application is renewable every 12 months
        • Cap on number of consumers that will receive this – decided by water company

  Clients receiving Winter Fuel Allowance (£200) + Warm Home Discount (£140) + Hampshire Energy
  Grant Scheme (£149) + water account savings ~£150 = ~£639, may have most or all of their fuel bill
  covered completely and still get a discounted water bill

Surviving Winter Fund

  The aim of this fund is to ensure that older people who struggle with the cost of
  winter can survive the winter with a reasonable level of comfort and dignity

        •   Grants of up to £100 or £125 in exceptional circumstances
        •   The fund is for food, heat or warm clothes
        •   All Hampshire state pensioners are eligible whether or not they receive pension credit
        •   Other Hampshire residents in need are also eligible
        •   Housing status (social, rented, owned) is not relevant
        •   Only available by referral through your local Citizens Advice

Questions?

Glenn Greene
Adviser
Citizens Advice Rushmoor
aldershot@citizensadvicerushmoor.org.uk

www.citizensadvicerushmoor.org.uk