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.

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.

It is imperative that prepayment meter (PPM) customers continue to receive protection. The CMA stated in its initial ruling of the energy market investigation that PPM customers have higher actual and perceived barriers to switching that arise from both lack of internet connectivity and the need to physically change meter to switch to a wider range of tariffs.

NEA believes dramatically improving domestic energy efficiency levels remains the most enduring solution to addressing energy affordability, however, we also know other key actions are required in retail energy markets to safeguard vulnerable domestic customers, particularly those living on the lowest incomes.

NEA has supported the Regulator’s work to protect more low income and vulnerable customers from unexpected price rises. The efficiency and cost effectiveness of gas distribution networks play a key role in tackling fuel poverty levels and we need to redouble our efforts to move as many households as possible who are reliant on home heating oil to cleaner, greener natural gas. This also provides low income households with a more flexible and affordable monthly or pay as you go option.