EDF renews calls for social tariff offering cheaper energy bills and slashes standing charge for thousands
Ofgem's energy price cap will fall this weekend but some could still pay more this winter than last
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EDF has renewed its calls for a social tariff that would provide cheaper bills for struggling families.
Managing Director of EDF Energy Customers, Philippe Commaret, made the pleas as he announced measures to slash their standing charges for hundreds of thousands of customers.
It comes as Ofgem's energy price cap will fall this weekend, but there are concerns households could still pay around 13 per cent more this winter than last.
Simon Francis, coordinator of the End Fuel Poverty Coalition, which is part of the Warm This Winter campaign, said: “Average energy bills are still almost double what they were three years ago and Government help for households, which was available last winter, has been axed.
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“This means this winter will feel worse for many households.”
Mr Commaret warned it’s “not sustainable” for individual companies to be the ones helping customers, adding it risks some households missing out on the help if they use a supplier with worse support packages.
He said: “It’s not something that can be enduring, so the reason we are doing it is also to call on Ofgem and Government to think about the way that tariffs are set up.
“The reality is that the situation since last year has worsened, not only in terms of the number of customers who are indebted, but also in terms of debt per customer.
“That’s why we believe we need to take action to help the customers who are most in need.”
A cross-party think-tank is calling on the Government to set out mandatory, enforceable requirements that specify minimum standards for social tariff provision.
In a report published today – commissioned by Citizens Advice, the Social Market Foundation presents a new roadmap for social tariffs, addressing major issues including low take-up and poor targeting.
The report calls for support to be extended across these essential markets:
- Household utilities (water and sewerage, gas and electricity)
- Broadband
- Public transport (i.e. bus and rail travel)
- Car insurance.
The responsibility and implementation of social tariffs is largely left to companies at the moment, meaning eligibility criteria and discounts differ from firm to firm.
Sam Robinson, senior researcher at Social Market Foundation, said: “Markets are the best vehicle for delivering most goods and services efficiently and affordably, but sometimes they fail the most vulnerable in society – with dire consequences.
“As the cost-of-living crisis becomes our new normal, we must confront the fact that increasing numbers of families are locked out of having life’s essentials.
“Old systems and criteria for support and discounts can no longer be relied upon – because those in need are falling through its cracks."
Mr Robinson said action to increase the reach of social tariffs in the short-term, and urged policymakers to look to overhaul the current social tariffs framework in the longer term.
Citizens Advice said their advisers are seeing increasing numbers of people who can’t afford their essential bills.
David Mendes da Costa, principal policy manager at Citizens Advice said: “Record numbers are struggling to afford utility bills, and last year over four million people were priced out of broadband, mobile or insurance.
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“While questions remain for the government, regulators and companies on how social tariffs schemes would best be rolled out, there’s no question they are now an unfortunate necessity.
“As we head into another impossible winter, it’s clear social tariffs across essential services would provide much-needed relief to those desperately trying to stay afloat.”
A Department for Energy Security and Net Zero spokesperson said: “We recognise the cost-of-living challenges families are facing and spent £40 billion paying around half a typical household’s energy bill last winter.
“While energy prices are falling - our Energy Price Guarantee remains in place to protect people until April next year.
“We are also providing additional targeted support for the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount and millions of vulnerable households will receive up to £900 in further Cost of Living Payments.
“We continue to keep all options under review for those most in need.”
A spokesperson for Ofgem said: “Despite a further reduction in the price cap this October, we know this remains a difficult time for households and this winter prices remain volatile.
"We are working closely with industry to make sure they are proactively supporting their customers, particularly those in vulnerable circumstances.
"We are also working with Government on options to help consumers, including examining a social tariff, among a range of other options.”