The NPC says Ofgem’s new proposal that energy suppliers offer two special tariffs in response to criticism of high standing charges on bills is misleading.
The UK’s largest campaign group run for and by older people believes the plan, which may apply from next winter, is too little too late and that it will just allow energy suppliers to bury the charges elsewhere.
The Ofgem plan would require energy firms to offer customers a choice of two new tariffs: One price, capped tariff that includes the standing charge, and another that loads the charges on energy usage instead.
Jan Shortt, NPC general secretary said: “This supposed solution from the government’s energy regulator Ofgem to deal with exorbitant standing charges for next winter in no way helps the millions of older, vulnerable, and poor who are turning off their heating and skipping meals this winter.
“The special tariffs Ofgem is proposing won’t apply until next winter, and they can merely hide the standing charges elsewhere.”
Older people who have lost their winter fuel payment are in serious danger of falling ill as the temperatures drop. A new study by Age UK found that more than a million aged over 66 have been skipping meals to cope with the rising energy bills.
They also discovered that 620,000 older people with long term health conditions were missing meals.
Low energy users, which is an ever-increasing number now due to rising costs, are hardest hit with standing charges making up around two-thirds of their bill. For example, even if you cut back or turn your heating off, you will still have to pay the fixed standing charge.
“This is simply not good enough by Ofgem, and the NPC will be writing to the regulator to ask them to reconsider this extremely weak proposal.”
Every household must pay fixed daily ‘standing charges’ on top of their energy bills to cover the costs of connecting to a supply. But as energy firms report huge profits, while bills continue to rise, there have been widespread calls for the charges to be scrapped.
In fact, 30,000 people complained to Ofgem when they held a recent consultation on the issue.
Aside from the proposed new, additional tariffs in Ofgem’s planned pricing overhaul for next winter, is the possibility that some unpaid bills built up during the recent high-price crisis may be written off.
The NPC continues to campaign alongside other concerned organisations for the chancellor to reinstate the winter fuel payment this year, as there has been no proper analysis of the impact on the estimated ten million retired and vulnerable people who will lose the £200 to £300 help with their bills.
Rodney Sadd
Crowland
Unite union delegate
South Holland & The Deepings CLP
