Energy customers in local lockdown need ‘flexible protections’

Local lockdowns imposed by the government will require more flexible approaches to consumer protections, industry bodies have warned.

Speaking at a recent roundtable hosted by Auriga Services, its chief executive Mark Abrams said the company had taken more telephone calls which were “significantly longer”. He said people in vulnerable situations were calling the service not just for help but also to talk as a result of being in greater isolation.

“We have also learned that people are less concerned about their debt right now but are in urgent need of immediate help, for example; relief of current bills and emergency payments for fuel and food”, he later added.

Dave Newton, policy manager, energy consumers and engagement at the Department for Business Energy and Industrial Strategy (BEIS) said the government had been working closely with other industry bodies such as Ofgem to develop protections for those who may have to stay at home during winter.

Newton said: “We do not obviously know the ongoing impact of coronavirus into this winter but we have seen already with the local lockdowns in the north, Scotland and elsewhere that the key issues are going to be having an adaptable, flexible set of protections that can support customers who may have to stay at home longer, particularly during the winter heating season.”

He also pointed out that the current projected end date of the furlough scheme in October coincides with the start of the winter heating season, meaning financially vulnerable families could face more targeted issues such as having to home school their children.

Furthermore, Newton added that data sharing between different organisations will be key to ensuring help goes to the right people.

“There’s a number of different ways we can use government data to try to support affected customers this winter. One of the particular areas where we are focusing  on is those in receipt of free school meals and thinking about if there are further home school requirements both locally or nationally, how can we support those households to heat their homes so that kids can actually get on with home schooling in a warm house?

“That’s a particular challenge we are focusing on at the moment and I think data sharing has a big part to play if we are looking at any solutions around that”, he said.

Responding to the comments Matt Cole, chair of the Fuel Bank Foundation, told Utility Week: “Having the ability and capability in place – and importantly as well the funding already lined up – to make support happen quickly is essential as local lockdowns will potentially drive increased and urgent need.

“We saw regional discrepancies early on in the initial Covid lockdown through our Fuel Bank network where need increased by around 23 per cent. This was dwarfed however by some local peaks of over 300 per cent and we need to be prepared for this as any local restrictions are enforced.

“It’s also important that utilities continue to recognise that not all consumers will be in the same place and so any action they may take to recover debt, for instance, needs to reflect the local situation as well as their individual customer’s specific position.”