Just two of the ten best energy deals are from suppliers participating in the Government’s Warm Home Discount scheme – down from six a year ago****
Discount offers vulnerable customers £140 off their electricity bills
But under current Government rules, suppliers with fewer than 250,000 customers don’t have to take part in the scheme****
Uswitch.com calls for Warm Home Discount to be extended to all energy suppliers to improve choice and provide more targeted support to those in need.
Vulnerable consumers are facing increasingly limited choice when looking to switch to the market’s best deals, according to a new analysis from Uswitch.com, the independent price comparison and switching service.
Just two of the ten cheapest energy tariffs are currently from suppliers offering the Warm Home Discount, down from six out of ten a year ago. The discount entitles qualifying customers to a rebate of £140 from their annual electricity bill.
The decrease in the number of the best buy deals offering the Warm Home Discount is due to an increase in the number of new suppliers entering the market with competitive tariffs over the last 12 months. Under current Government rules, energy providers with fewer than 250,000 customers aren’t required to offer the Warm Home Discount, and to date none have voluntarily joined the scheme.
To increase choice and help remove barriers to switching for millions of consumers who are often in the greatest need of lower bills, Uswitch.com is calling on the Government to extend the Warm Home Discount to cover all energy suppliers from 2017.
Uswitch.com is also calling for Winter Fuel Payments, with its annual budget of over £2 billion, to be integrated into the Warm Home Discount scheme to more effectively support the most vulnerable. Unlike the discount, Winter Fuel Payments aren’t means-tested and are issued to all elderly consumers, meaning they fail to help millions in fuel poverty under pensionable age. According to Uswitch.com, significantly increasing the pot of money available through an expanded Warm Home Discount scheme would help significantly more vulnerable people across society.
Top ten cheapest energy deals on 1st May 2016 and 1st May 2015
| 1st May 2016 | 1st May 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Supplier | Tariff | WHD? | Supplier | Tariff | WHD? | |||||
| 1 | IRESA | 12 month Fixed Direct Debit | No | 1 | E.ON | E.ON Uswitch Collective Apr 15 | Yes | |||
| 2 | Avro Energy | Simple and Power | No | 2 | First Utility | iSave Fixed May 2016 v3 | Yes | |||
| 3 | Sainsbury’s Energy | SE Fixed Price May 2017 | Yes | 3 | GB Energy | Premium Energy Saver | No | |||
| 4 | GnERGY | GnERGY Fixed June 2017 | No | 4 | GnERGY | GnERGY Fixed June 2016 v1 | No | |||
| 5 | Places For People | Together – September 2017 – fixed 32 | No | 5 | Extra Energy | Fresh Fixed Price Sept 2016 v1 | No | |||
| 6 | Flow Energy | Connect 6 | No | 6 | Flow Energy | Connect | No | |||
| 7 | GB Energy | Fixed 12 Ruby | No | 7 | ScottishPower | Online Fixed Price Energy May 2016 | Yes | |||
| 8 | Octopus Energy | Octopus Variable | No | 8 | Co-operative Energy | Fair & Square May 2016 | Yes | |||
| 9 | Extra Energy | Fresh Fixed Price Oct 2017 v1 | Yes | 9 | npower | Price Fix July 2016 | Yes | |||
| 10 | So Energy | So Dragonfly | No | 10 | OVO Energy | Better Energy (all Online) | Yes | |||
| 2/10 suppliers offered Warm Home Discount | 6/10 suppliers offered Warm Home Discount |
Source: Uswitch.com. Top ten deals based on Ofgem average energy use profile for dual fuel tariffs paying by Direct Debit. Extra Energy joined the scheme on 1st April 2016.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Energy prices are felt most acutely by people with the least to spend, including the elderly, disabled people and low income families. They have the most to gain by switching energy supplier, yet many will feel forced to remain with larger providers to avoid losing their £140 Warm Home Discount. It is simply not fair that vulnerable customers face barriers to switching to the market’s best deals.
“The Warm Home Discount scheme has provided important financial support to around two million people since it was first set up, but more can be done to build on its success. The Government should set out a timetable for extending the Warm Home Discount to cover all energy suppliers, increase funding for the scheme, and make better use of data to provide more targeted support.”
FOR MORE INFORMATION
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
Notes to editors
1. See table in body of release 2. Ofgem rules state that smaller suppliers with fewer than 250,000 customers do not have to take part in the Warm Home Discount Scheme but they have the option to join. (Paragraph 1.1, Warm Home Discount: Guidance for Licensed Electricity Suppliers and Licensed Gas Suppliers , Ofgem, 30 March 2015 https://www.ofgem.gov.uk/sites/default/files/docs/2015/03/whd_supplier_guidance_sy5_0.pdf). To date no suppliers with fewer than 250,000 customers have voluntarily decided to join the Warm Home Discount scheme.
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