The COVID-19 outbreak has already had a significant impact on household finances, especially those that already struggle with the costs of essential services. But there is a bigger gathering storm. Existing debt issues within the water and energy sectors are being badly exacerbated by the current crisis, and whilst welcome, current provision is not adequate to deal with the scale of these challenges.

The Connecting Homes for Health pilot project was delivered by fuel poverty charity NEA, Northern Gas Networks and YES Energy Solutions. In what’s believed to be an industry first, it combined funding from the Fuel Poor Network Extension Scheme and Warm Home Discount Industry Initiatives to install free gas connections and central heating systems in over 100 properties in the North East of England whose residents were on low incomes and at risk of cold-related ill health. Residents also benefited from support and energy advice on how to use their new systems effectively, improve energy efficiency and reduce fuel bills.

In our January 2020 response to Ofwat’s forward work plan, we acknowledged that driving innovation across the water sector was vital to address the strategic challenges the industry faces. We believe the innovation competition allows an additional opportunity for companies to address these key challenges.

District heating can contribute to fuel poverty reduction targets through its ability to provide stable and predictable prices for energy over an extended period of time; reduced worry for households about breakdowns or repairs; the creation of local employment opportunities and contribution to economic growth.

NEA appreciates that many energy suppliers and their staff will be working tirelessly to provide appropriate support and services for customers in vulnerable circumstances during the COVID-19 outbreak. NEA has also been capturing its own staff’s feedback on the early impacts COVID-19 is having on vulnerable customers’ access to support. The findings provide a snapshot of some emerging trends.

Driving consumer and societal outcomes through company performance should remain a key ambition of Ofwat so that it can continue to demonstrate the legitimacy of a privatised water sector even with the reduced risk of re-nationalisation following the recent general election. Developing a richer understanding of company performance is valuable, providing the commitment to do so leads to consistent and comparable metrics made visible to a wider audience, including customers.

NEA NI works closely with the Utility Regulator across many aspects of work, but especially in relation to consumers and policy development, also with the view to empowering consumers and communities. We have made some comments around the objectives in the draft Forward Work Programme and have made some suggestions, which we hope are helpful on priority projects, which we believe may enhance the Forward Work Programme 2020–21.

Based on the 2016 House Condition Survey (HCS), Northern Ireland has a rate of fuel poverty at 22%. It is also estimated that there are approximately 43,800 households in extreme fuel poverty which means they need to spend over 15% of their total income to heat their homes. Additionally, one in five households in Northern Ireland are living in relative poverty and 19% of working age adults in the private rented sector spend more than a third of their income on housing.

The Warm Home Discount (WHD) scheme currently provides a payment of £140 (inclusive of VAT) towards energy bills, and also contains provisions to carry out projects to help low-income and vulnerable households to better afford their energy bill. The scheme was introduced by the Government in April 2011 and is an obligation on energy suppliers funded through bills.