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Citizens Advice response to Ofgem’s Energy Summit on Tackling Fuel Poverty

23 April 2008

Teresa Perchard, Director of Public Policy at Citizens Advice said:

“We warmly welcome the positive actions from today’s Energy Summit on Tackling Fuel Poverty. The Summit is a very welcome commitment from the fuel industry, government and regulators to do more to tackle the growing and pernicious problem of fuel poverty and we stand ready to help ensure that vulnerable customers and those on low incomes have every opportunity to reduce their bills and receive the help they are entitled to.

“The Citizens Advice service already helps hundreds of thousands of people who are fuel poor claim benefits and sort out consumer problems with fuel. But we have been seeing more and more people coming into bureaux struggling to pay their household bills and cope with rising fuel costs. In the first two months of this year bureaux saw an 11% increase in the number of fuel debt cases they were seeing compared to the same period last year. Lower income groups are currently less likely to explore options to switch tariffs and households using pre-payment meters to pay for their fuel, pay on average £145 more per year simply to use this payment method.

“Recent ‘Energy Best Deal’ pilot we ran with Ofgem in Devon and Cornwall, Yorkshire and Wales revealed how much people could save simply by switching providers, tariffs or moving off a pre-payment meter, once they had access to clear information from a trusted source.These local financial education and information sessions provided information and advice to low income households, demystifying the myriad of offers and help that are available from the industry and from government. However, much more needs to be done, and on a wider scale, to raise awareness about social tariffs and other programmes and disseminate information about all the help that is available for consumers available to help the most vulnerable customers.

“We are keen to support an action point deliver these goals once it is published.”

Case studies:

A CAB saw a woman on Disability Living Allowance who lived on her own. Her only heating was from storage heaters. Her total cash income was approximately £70 per week but she was paying more than £30 per week on her electricity.

A CAB saw a 65 year old man who was retired. He used a payment card for his electricity, which was more expensive and paid for in advance. He had been paying £15 weekly and was £128 in credit. He was then told he had to start paying £27 a week which he could not afford.

A CAB in London saw a single man with multiple debts who was paying £13 a week in fuel charges which was more than 20% of his income.

A CAB in Yorkshire saw a woman on a very low income living in a one-bedroom flat paying for her gas on a pre-payment meter at a cost of £20 per week and electricity at £10 per week. She could not afford to heat her flat.

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.