Ministers urged to review nine nightmare energy rules

Ministers should send a clear signal that they are on the side of consumers by reviewing nine sets of rules, according to campaigners.

As households count down to the next Ofgem price cap announcement on Friday (23 August), an analysis of recommendations from previous Warm This Winter Tariff Watch Reports [pdf] has identified ways regulators could cut bills.

While six recommendations from a series of Warm This Winter Tariff Watch Reports published during 2023 and 2024 have been implemented by Ofgem, a further nine proposals have not been acted on.

Chief among them are recommendations to bring down standing charges, cap exit fees and improve governance of the energy industry. [1]

The standing charge reforms could see a reduction in these annual charges on households by £152.06 (46% from £334.08 a year to £183.02).

Delivering these changes would require changes to Ofgem regulations and Government funding as well as action taken to protect low income and high usage households, such as those who rely on energy for medical needs.

This could include the introduction of a social tariff, which is backed by well over half the population according to recent polling by Opinium, and could be paid for through contributions from energy industry profits (producers, networks and suppliers).

Meanwhile, the loose regulation on exit fees has left bill payers at risk of being stuck on expensive fixed rate energy tariffs or with poor customer service as the cost of leaving a fixed tariff early would leave the household out of pocket.

Exit fees on energy bills have increased by 345% in the last three years. Around three million UK households have opted for fixed energy tariffs and the latest Warm This Winter Tariff Watch report shows that the majority have exit fees of more than £100. A snapshot taken in April 2024 found that 76% of fixed tariffs have annual costs above the Ofgem price cap.

Other rules which have been highlighted in Tariff Watch reports include a lack of transparency in energy firm ownership which has seen British households boost the profits of Chinese and Qatari Government-backed funds as the cost of the gas network has surged 38%.

Questions were also raised about the profits being made by energy firms due to an underinvestment in electricity infrastructure and 14 obscure charges to households’ electric bills. 

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“These suggestions must be part of a road map to bring down energy bills, improve transparency in the industry and reset Britain’s broken energy system so it is on the side of consumers.

“While these changes to regulation won’t be enough to resolve all the problems we see, it would signal a welcome change in direction.

“We know the Government has the ambition to bring down bills in the long term, but it also needs to look at shorter term measures too.

“Ministers can earn the public’s trust by protecting vulnerable households, reducing energy debt, bringing in changes to energy meters, ramping up insulation programmes, reforming standing charges and ending energy industry profiteering.”

Fiona Waters, spokesperson for the Warm This Winter campaign which commissioned the reports, said:

“The new government has inherited a nightmare set of rules that are clear hurdles to creating the fairer energy system that the public are crying out for. 

“With energy bills forecast to increase again in October, this problem is only going to get worse if new ministers do not step in now. Now is the time to bring back fairness with urgent action to support struggling households through the next winter and a commitment to end profiteering by properly taxing the wider energy industry.”

Dylan Johnson, from Future Energy Associates which compiled the reports, added:

“More can and should be done by the energy regulators. 

“Overall, Ofgem must become more proactive in identifying problems with our energy system and more efficient in enacting the necessary changes to protect the most vulnerable in our society. 

“For now, Ofgem must implement immediately actionable solutions and not shy away from making the key long-term decisions that can achieve a fairer, greener energy system.”

ENDS

Recommendations Addressed by Ofgem / Government (edition of Tariff Watch):
  • Convergence of PPM and Direct Debit Prices (TW1): Ofgem implemented a levelling charge, balancing the standing charges between PPM and Direct Debit customers.
  • Review of Wholesale Energy Allowances (TW1): Ofgem conducted a thorough review and concluded no systematic differences in costs.
  • Reduction on EBIT Allowance (TW1): Ofgem revised the EBIT allowance to include both fixed and variable components.
  • Market Stabilisation Charge (MSC) Removal (TW1): The MSC expired on March 31, 2024.
  • Consumer Standards Consultation (TW2): Ofgem announced reforms to improve customer service, effective December 2023.
  • New Prepayment Meter Rules (TW2): Ofgem set conditions for PPM installations, effective November 8, 2023, although these did not go far enough in addressing the concerns of all campaigners.
Recommendations Not Addressed by Ofgem / Government:
  • Transparency in Cost Calculations (TW3a, TW3b): Ofgem has not improved the transparency or provided detailed breakdowns and machine-readable data formats for DNO and gas network costs.
  • Clearer Explanations for Shifting DUoS and TNUoS Costs (TW3a): Ofgem has initiated a review but has not provided clear explanations or justified the cost shifts.
  • Addressing Chronic Underspending by DNOs (TW3a): It remains unclear what specific actions Ofgem is taking to ensure adequate investment by DNOs.
  • Dynamic Approach to Line Losses Calculation (TW3a): Ofgem has not implemented a dynamic framework for line losses.
  • Management of Gas Network Decommissioning Costs (TW3b): Ofgem has acknowledged the issue but has not detailed specific steps to manage decommissioning costs.
  • Ownership and Ethical Considerations (TW3b): Ofgem has not outlined specific actions to scrutinise and align gas network ownership with national security and ethical standards.
  • Cap on Exit Fees (TW4): Ofgem has not implemented measures to cap exit fees or improve their transparency.
  • Shift Costs from Standing Charges to Unit Rates (Standing Charge Report): Ofgem has closed their call for input on standing charges, but no further steps have been taken to move adjustment allowances, headroom allowances, profit allowances, payment uplift, and levelling costs entirely to the unit rate section of the bill.
  • Shift Policy Costs from Standing Charges to General Taxation (Standing Charge Report): While the Labour Party has indicated a willingness to broadly address standing charges in their manifesto, no concrete steps have been taken yet to move policy costs from standing charges to general taxation.

The full report is available to download. Previous Tariff Watch reports can be downloaded from the reports and correspondence section of the EFPC website.

Reaction as Labour win UK general election

Labour has won a landslide victory in the UK general election as years of staggering energy bills have left households £2,500 out of pocket due to Britain’s broken energy system.

Research published earlier this year found that people are turning to loan sharks to pay their energy bills, millions of people are living in cold damp homes and many are experiencing a mental health crisis driven by high bills.

A spokesperson for the End Fuel Poverty Coalition commented:

“The new Government has said that we will see change and that they will lower energy bills, insulate homes and invest in homegrown clean energy while getting us off oil and gas.

“But Ministers inherit a broken energy system which has prioritised oil and gas company profits while millions of ordinary people have shivered in cold, damp, mouldy homes they can’t afford to heat.

“Lowering bills permanently will take time, but short term steps can be taken to help struggling and disillusioned households.

“The new Government must earn the public’s trust by protecting vulnerable households, reducing energy debt, driving more onshore wind, bringing in changes to energy meters, ramping up insulation programmes, reforming standing charges and ending energy industry profiteering.”

Actions new Ministers will be asked to consider include:

PROTECT VULNERABLE HOUSEHOLDS – Consult on a social tariff, but in the short-term introduce a more comprehensive warm homes discount for vulnerable households so that fewer people have to choose between heating and eating.

REDUCE DEBT – Introduce a Help to Repay scheme to offer a lifeline to millions of people who are trapped in energy debt through no fault of their own, and ban energy companies from selling debts on to debt collectors.

ONSHORE WIND – Lift the de facto ban on onshore wind, which is one of the quickest and cheapest forms of electricity generation to get up and running and supported by nearly 8 in 10 Brits, so that we can start to reduce our dependence on volatile oil and gas.

METERS – Ban the forced installation of prepayment meters for good and require suppliers to fix broken smart meters so that consumers are only ever charged for what they use.

INSULATION – Invest in insulating our leaky housing stock so that vulnerable people do not have to spend yet another winter shivering in cold, damp, and often dangerously mouldy homes.

STANDING CHARGES – Reduce electricity and gas Standing Charges to bring down energy bills for everyone ahead of the next price cap change in October and consult on a social tariff so that vulnerable high-users are not unfairly penalised.

Fiona Waters, spokesperson for the Warm This Winter campaign, said:

“The UK’s dependency on expensive gas is why our energy bills have soared and why so many people have struggled to afford to heat their homes. People have seen through some politicians’ smokescreens and misinformation about net zero.

“With only 103 days of new gas reserves left in the dwindling North Sea it’s no wonder people have rejected candidates who argued for more drilling.

“We need to reduce our reliance on fossil fuels and the energy firms that have made £427bn in profits in the last few years. We need to end energy debt, protect households from the energy market, bring down bills for good, improve housing standards and make Britain a clean energy superpower.”

Greenpeace UK’s co-executive director, Areeba Hamid, said:

“This landslide victory has buried Sunak’s divisive anti-green agenda once and for all and is a powerful call for change. Voters have resoundingly rejected his climate rollbacks and elected a party with a proper plan to turbocharge cheap, clean, renewable energy – promising to slash emissions, lower bills and deliver hundreds of thousands of new green jobs.

“However, the Green surge and success of the Lib Dems, who stood on much bolder climate and nature pledges, shows that there is a genuine appetite from voters for much stronger green policies from the government. Keir Starmer must take note.

“Our new Prime Minister must show real leadership on climate and nature – both at home and abroad – demonstrating that the green transition can be done in a fair and equitable way. He must seize the opportunities for economic revival and energy independence that delivering a greener, cleaner Britain presents.

“But to do that he must take on the elites, increase taxes on the super-rich and polluting companies, and invest, invest, invest. Invest in cheap, clean power and create new, secure green jobs for workers. Invest in warm homes, trains and buses to lower our energy bills and transport costs for good. Invest in greener farming and restoring nature so our rivers become free from sewage once more and wildlife can flourish. This is the change people voted for – it’s time for Starmer to deliver.”

Tessa Khan, executive director of Uplift
“The public has voted for a government that is promising to fix our broken energy system and tackle the climate crisis.

“Scottish Labour’s platform of green growth and the transition to clean energy, in particular, delivered huge gains. People in Scotland know that the North Sea is in decline – with jobs supported by oil and gas more than halving in the last decade, despite hundreds of licenses being issued in this period – and that clean energy is the only way to deliver a fairer and more secure energy system in the long term.

“The lesson for all politicians is that policies that tackle the climate crisis and lower bills are popular with the British public, with the Greens making gains and the Conservatives’s backtracking on environmental commitments losing them support in large parts of the country.

“This new government must now get on with the crucial job of rolling out renewables and insulating homes to lower bills, and ensuring that the UK has a coherent transition plan that ensures workers and communities benefit from the shift to green energy.”

A spokesperson for Climate Cymru added:

“The UK parties with the most robust climate manifestos have quadrupled their number of MPs. The parties with strong climate manifestos have doubled them. There is a strong public mandate for action and it is time to get on with it.”

Angela Terry CEO One Home commented:

“British citizens want to go green but don’t know how so public education is critical. The new Government must prioritise tackling climate change and in particular insulating people’s homes to keep the heat in and reduce bills and carbon emissions for the long term.”

Changes could halve energy standing charges

A new discussion paper that would see energy standing charges reduced has been published by campaigners.

Future Energy Associates have identified how standing charges for every household with electricity and gas connections could plummet from £334.08 a year to £183.02 – a reduction of almost half (£152.06 / 46%).

For electricity the standing charge would reduce from £219.42 to £149.17 per year (32% reduction) and for gas the standing charge would reduce from £114.66 to £33.85 per year (71% drop). 

Delivering these changes would require changes to Ofgem regulations and Government funding as well as action taken to protect low income and high usage households, such as those who rely on energy for medical needs.

This could include the introduction of a social tariff, which is backed by well over half the population according to recent polling by Opinium, and could be paid for through contributions from energy industry profits (producers, networks and suppliers).

The analysts identified that up to £5bn a year of costs on energy bills could be moved to general taxation. Policy makers could remove these costs from all bills, which would bring down electricity unit rates as well or (for a lower cost to the Treasury of around £200m a year) remove the costs just from vulnerable low income households with high energy needs.

The options paper commissioned by the Warm This Winter campaign includes moves to:

  • Transfer five elements of standing charges (the adjustment allowance, headroom allowance, profit allowance, payment uplift and levelling costs) entirely to the unit rates.
  • Shift some policy costs to general taxation.
  • Revise the ratio of operating costs paid through standing charges versus unit rates to increase the amount on unit costs, thereby delivering an incentive to the energy market to drive down excess costs such as marketing.
  • Reduce the standing charge elements of network costs by 10%, funded by excess shareholder profits.
  • If all these options were taken together (i.e. changes to standing charges and unit costs) these proposals would reduce the total energy bill for the average household by £214.22 a year.

Dylan Johnson, one of the analysts involved in the report, said:

“The comprehensive changes we have suggested would bring down standing charges and could also mitigate negative distributional impacts of standing charge reform previously identified by Ofgem. We would urge new ministers to meet with industry, consumer groups and experts to analyse how we can change standing charges in a way that is fair to all households.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Standing charges are an unfair flat tax on every energy consumer. Every household pays through the nose just to be connected to the grid, even if they use no energy.

“In the past there has been caution about reform due to the potential impact of change on households with a high dependency on energy for medical needs, we still need further detailed analysis of these options by Ofgem to ensure that this group is not penalised. 

“However, this report does indicate that reform of standing charges may actually be possible in a fair way. It will need Ofgem, the next Government, energy industry and consumer groups to work together to make it happen. The prize of cutting standing charges in half before this winter should be one which new Ministers seize upon.”

Jonathan Bean from Fuel Poverty Action added:

“Millions of us are suffering energy starvation due to high standing charges that leave no money for heating, hot water or power. Many on prepayment meters get cut off. This cruel energy system needs urgent reform by the new Government.”

Warm This Winter spokesperson Fiona Waters said: 

“The energy crisis has already left bill payers £2,500 out of pocket since it started three years ago and we know energy bills will go up again in October.

“People up and down the country are literally at breaking point, are still paying 50 percent more for energy and at the heart of these unfair bills are the standing charges. The public are crying out for action now.

“The next UK Government will need to act quickly, bring down bills for good, end energy debt, improve housing standards through insulation and ventilation and also make Britain a clean energy superpower so we are not at the mercy of profiteering global oil and gas giants.”

For customers in energy debt, campaigners have also called for a universal, consistent, nationwide, debt matching programme funded by the £1.3bn customers are paying through bills for energy debt costs this year. 

ENDS

Standing Charge Reduction Analysis by Future Energy Associates is available to download: https://www.endfuelpoverty.org.uk/wp-content/uploads/Standing_Charges_Final.pdf

Energy debt causing households to live in fear of loan sharks

Households in energy debt are turning to illegal money lenders to pay for their bills and everyday essentials, according to new research shared with the House of Commons Energy Security and Net Zero Committee today.

Research among households in energy debt by the Warm This Winter campaign, found that almost one in five (18%) have turned to illegal money lending sources in the last 12 months. [1]

Among younger households in debt the situation is even worse, with a quarter (24%) of under 35s and a third (32%) of customers aged 35-44 turning to illegal money lending.

In the next 12 months, the illegal debt mountain is due to grow with two-thirds of households in energy debt due to look for more sources of money. While many will turn to credit cards (27%) and overdrafts (14%), 20% will borrow from family and 14% will turn to illegal money lenders.

The impact on households is that 13% of customers in energy debt owe money to someone they are frightened of. This figure rises to 18% among those living with long-term illness and in households with young children under the age of 5.

Simon Francis, coordinator of the End Fuel Poverty Coalition gave evidence to the Committee and presented them with the research findings:

“The findings are horrific and worse than experts had feared. 

“Energy debt is forcing households to wake up in the morning scared of the consequences of using electricity or gas.

“Energy bills and energy debt are a fundamental part of our broken energy system which has led to the cold damp homes crisis we saw this winter. 

“The long term solutions are obviously wider than changes to standing charges and tariff reform. We need to see more insulation, ventilation, unblocked cheaper renewables and weaning ourselves off oil and gas to improve energy security.”

The Committee also heard that Time of Use tariffs, one of the main proposed solutions to high energy bills, risk leaving behind millions of households. Research by Survation for campaign group 38 Degrees found that over half (54%) of the public may become energy exiles – unable to access the latest market innovations due to their household circumstances. [2]

Veronica Hawking, acting campaigns director at 38 Degrees said:

“This research shows millions could miss out on time-specific tariffs designed to lower bills, through absolutely no fault of their own. This includes people who rely on energy for medical needs, who need to leave the house at a regular time of day, or who can’t access a smart meter.

“That’s why it’s crucial that any changes to our broken energy system must be underpinned by a social tariff, and why the government’s U-turn on a social tariff consultation was a huge missed opportunity. Whoever forms the next government must make it an absolute priority.”

As well as introducing a social tariff and banning discriminatory energy tariffs, the Committee heard recommendations on tackling the energy debt crisis. These included:

  1. A universal, consistent, nationwide, debt matching programme funded by the £1.3bn customers are paying through our bills for energy debt costs this year.
  2. A ban on energy firms from selling on debt to debt collectors.
  3. Better regulation of energy debt with energy debt and debt collection agencies used by energy firms to be subject to Financial Conduct Authority rules.
  4. More training for energy firms’ staff in recognising illegal money lending.
  5. Reforms to standing charges, including their abolition for prepayment meter customers if certain conditions are met. [3]

Warm This Winter spokesperson Fiona Waters said: 

“We like to think of ourselves as a civilised society but surely having heat and power is a fundamental human right for everyone and the idea that people are so desperate they are turning to dangerous loan sharks is horrific. 

“It’s extremely worrying to see a quarter of under 35 year-olds in energy debt have no way out other than turning to illegal money lending. This is setting themselves up for a lifetime of being at the mercy of loan sharks and their ilk and I dread to think of the impact this has on young families. 

“We need a government that won’t abandon people with unaffordable energy bills and will instead invest in permanent solutions, like home insulation and homegrown renewable energy.”

Jonathan Bean, from Fuel Poverty Action added:

“Energy inequality is growing to dangerous levels, with millions of us starved of energy or forced into dangerous borrowing. We need a fairer system where everyone is safe, and has access to cheap renewable energy.”

ENDS

[1] Research was conducted among 500 people across the UK living with energy debt. The interviews were conducted online by Sapio Research between April and May 2024 using an email invitation and an online survey. 

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. Sample was selected from Online partner panels. 

[2] Survation polling for 38 Degrees. Survation polled 2,018 members of the general public, online between 26-29 April. Data were weighted to the profile of individuals aged 18+ in UK. Data were weighted by age, sex,  region, ethnicity, education level, and annual household income. The total includes those who are unable to access smart meters, rely on energy for medical or disability needs, have inefficient heating or who are unable to control when they use electrical appliances.

[3] Campaigners have called for reform of standing charges so that:

  • Investment and all policy costs are moved onto general taxation (and an end to the Ofgem “float and true up process”)
  • Reductions in marketing, operating, headroom and EBIT allowances for suppliers and moving marketing and operating costs onto unit charges to improve market competitiveness.
  • Review the £30bn profits in the network and transmission sector and examine the impact of moving network costs onto unit charges.
  • After reforms and reductions in charges, the end to PPM standing charges should be possible, subject to further analysis and equalities impact assessments.

Energy firms’ profits surge as households left in the cold

Weeks of autumn profit announcements by energy firms have come at the same time as data from the Warm This Winter campaign found that over a third (38%) of people from vulnerable households think they won’t or may not be able to afford to put the heating on at all this winter.

Among the recent announcements were National Grid, which posted profits of hundreds of millions of pounds in their distribution and transmission businesses. SSE also declared  £335m profits in similar parts of its company.

A large part of these profits come from the firms’ role as Distribution Network Operators (DNO) for electricity, which customers pay for through Standing Charges. In practice, it means that these firms can vary the cost of bills for people across different regions it provides electricity to.

For example, in the East Midlands, National Grid customers have the cheapest energy in the UK, but households it serves in south west England are paying £75 more every year in standing charges.

Ofgem has now announced an investigation into Standing Charges and a spokesperson for the End Fuel Poverty Coalition commented:

“The announcement of a Standing Charges review is a welcome step forward. Recent Warm This Winter Tariff Watch reports have highlighted how we need much more transparency in how our energy bills are calculated and the factors that go into calculating what is seen as a fair tariff.”

Another firm which benefits from Standing Charges is Scottish Power which is both an energy distributor and a supplier to households. Its Madrid-based parent company Iberdrola posted profits of 3.4bn Euros for the first nine months of 2023.

The supplier, which was previously named and shamed by Ministers as the worst culprit for forcibly installing prepayment meters, was recently granted 124 warrants for forcible PPMs in a move that has sparked concern among campaigners and politicians.

Jonathan Bean from Fuel Poverty Action, said:

“Firms are celebrating bumper profits whilst energy firms continue their plotting to restart the abhorrent process of breaking into homes to install prepayment meters

“It’s yet another example of firms profiting from misery.”

As research for Warm This Winter found that among those badly affected by the energy bills crisis are pregnant mothers and young families, all aspects of the energy industry have enjoyed a profits bonanza.

BP announced £2.7bn profit and Shell reported over £5bn profits.

Shell was recently offered 10 of the new 27 oil and gas licences in the North Sea by the Government. However, an audit of production data by analysts at Uplift found that across the hundreds of licences offered by UK governments since 2010, just 16 days of new gas has been delivered to the grid – half of which was sent to the Netherlands.

Equally, Norwegian firm Equinor’s profits continued to soar – up to £6.6bn according to the latest results. The company will also enjoy a tax break from the UK Government for its controversial Rosebank field.

Reporters at Bloomberg concluded that this field won’t begin pumping oil and gas until at least 2026, and it isn’t large enough to have an impact on the security of UK energy supply or prices

Fi Waters, spokesperson for the Warm This Winter said:

“These profits are shocking as 38% of vulnerable households say they cannot afford to put the heating on at all this winter. That’s pregnant women, the elderly, families with young kids and people with long term illness.

“The Government must step in and provide a consistent Help to Repay scheme for households in energy debt and an Emergency Energy Tariff guarantee which is available to all vulnerable households, regardless of supplier.”

The Emergency Energy Tariff would use the existing Energy Price Guarantee mechanism to fix the unit costs and standing charges for vulnerable groups at a lower level. Campaigners have suggested that this is fixed at the levels of energy bills in winter 2020/21, which would see eligible households’ monthly energy bills reduced by approximately £87 a month from current levels – a saving of around 46%.

Proposals for such a move are backed by 83% of the public and the initial research to inform the development of the Emergency Energy Tariff and targeting of support was undertaken by the University of Oxford’s Environmental Change Institute and Cambridge Architectural Research.

Dr Tina Fawcett, Associate Professor, University of Oxford:

“Our research has helped identify how to effectively target vital support to households most at risk this winter. To avoid future energy bill crises, locally we need more investment in energy efficiency and energy advice, and nationally we must rapidly reduce our dependence on fossil fuels.”

The public can sign the petition supporting an Emergency Energy Tariff online: https://www.warmthiswinter.org.uk/get-involved/emergency-energy-tariff-petition

Ofgem criticised for standing charge decision

Campaigners have written to Ofgem criticising the “gross injustice” of the current energy bills standing charges regime.

Standing charges make up a portion of the energy bill which every household user pays, regardless of how much energy they actually use.

Last week, Ofgem confirmed that the cost of market failures (e.g. energy firms collapsing) would continue to be recouped from consumers through the standing charges.

The decision comes just weeks after Ofgem confirmed an “inhumane” increase in energy bills will take place in January 2023 as well as this October. Ofgem are also now facing the prospect of legal action against its decisions following a notice of action from the Good Law Project last week.

Now Fuel Poverty Action and Disabled People Against Cuts have together written to Ofgem CEO Jonathan Brierley about present standing charges, including loading the cost of failed suppliers onto this part of people’s bills.

The letter states:

It is appalling that yet again Ofgem is punishing low income customers for its own failed regulation and the upside down priorities of the energy industry.  … This is consistent with the blinkered approach that has led you to give “too much benefit to companies at the expense of consumers”, in the words of  Christine Farnish, the Ofgem director who resigned recently.

Ofgem has claimed that high standing charges are the only way to protect high users, some of whom are people with health needs for electricity, e.g. for electrical medical equipment.

But the two groups suggest that Ofgem’s obligation towards vulnerable customers is being abused as an excuse for policies that impoverish and endanger thousands of people, including many who are disabled people. 

They name instead several alternative ways to protect people with high energy needs – without impoverishing vast numbers of low income customers. 

With Fuel Poverty Action’s proposal of Energy For All (e4a) each household would be entitled, free, to enough energy to cover basic needs, but people would pay a higher tariff for what they use above that amount. This would offer much needed security to all – including those who need more because of their health, disabilities, housing conditions, or family size. It would be paid for by the higher per-unit tariff on excess use, by windfall taxes and by ending the millions of pounds now poured daily into fossil fuel subsidies. 

Other options listed  include extensions of the Warm Home Discount, social tariffs, better disability benefits, and good safe insulation for vulnerable customers.  And they say that companies that cannot fulfil their purpose of providing the energy people need at a cost they can afford, could – and must – be brought back into public hands.

Ruth London from Fuel Poverty Action commented: 

Instead of looking at real, proportionate, workable changes to the current upside down pricing framework, Ofgem has chosen to continue hitting low income users harder than affluent neighbours. The standing charge means that however much they cut down their usage many people will never be able to pay their bills.

Paula Peters of DPAC says:

I’m a low energy user because I am terrified to switch it on and worrying about costs all the time. It’s making me permanently anxious as it is all of us. Last winter I was in a lot of pain with a cold house.  I needed NHS intervention: a steroid injection and a Nebuliser at A & E.