NEA comments on extension of the safeguard tariff
NEA has today welcomed Ofgem’s latest step to protect more vulnerable customers. Despite welcoming the move, NEA believes further action is required to safeguard the most vulnerable households who face missing out under the new cap. NEA’s Chief Executive, Adam Scorer, comments:
“This is an important and welcome move to protect vulnerable consumers but must be a platform to extend price protection to more low income households. The UK Government, Ofgem and suppliers know who these additional consumers are. There needs to be real urgency to break through any remaining impasses of safely sharing this data. This may be challenging but so is the acute stress and worry of unexpected price increases”.
1. National Energy Action (NEA) is the UK fuel poverty charity which undertakes research, advocacy and works collaboratively with partners from local and national governments, industry and the third sector to deliver practical solutions to vulnerable people living in cold homes across the UK. For more information visit: www.nea.org.uk.
2. NEA supports the safeguard tariff, however, customers with smaller suppliers won’t be protected and NEA estimates that over half a million eligible households will miss out on £260 of energy bill savings. Specifically because they will not receive a Warm Home Discount Rebate or be safeguarded under Ofgem’s proposed tariff. These households are mostly working age and fall into the lowest income deciles.
3. For more information on this issue see NEA’s oral evidence to the BEIS select ctte: https://www.parliament.uk/business/committees/committees-a-z/commons-select/business-energy-industrial-strategy/inquiries/parliament-2017/pre-legislative-scrutiny-of-draft-tariff-cap-bill-inquiry/ and NEA’s recent response to the Ofgem consultation on extending the Safeguard Tariff http://www.nea.org.uk/wp-content/uploads/2018/01/NEA-Response_Ofgem-Consultation_Providing-Financial-Protection-More-Vuln.._.pdf.