A number of energy companies have responded as many householders struggle to pay their bills despite record-profits being announced from several businesses.
The UK is facing an energy crisis as well as a cost of living crisis as inflation has hit record levels not seen for 40 years, and the Bank of England is expected to raise interest rates even further, meaning many are barely making enough money to cover the basic bills of the household.
There's no sign of energy prices decreasing either despite Shell and BP announcing record-profits this month and last, with BP reporting underlying profits hitting $8.45bn (£6.9bn) between April and June this year, more than triple the amount it made in the same period last year.
READ MORE: What to do if you can't or are struggling to pay your energy bills
Ofgem, the energy regulator, has also confirmed that the energy price cap will be updated quarterly, rather than every six months, as it warned that customers face a very challenging winter ahead. The energy price cap saw the average energy bill rise to £2,000 instead of £1,400 a year in October, 2021.
The cap, which limits the rates a supplier can charge for each unit of gas and electricity you use, could remain above £3,500 a year throughout most of 2023 according to the latest forecasts from energy consultant Cornwall Insight.
But what are the energy companies are saying? Are they helping their customers and what happens for those who simply don't or cannot afford to pay their gas and electricity bills? The Manchester Evening News spoke to several UK suppliers to find out the very latest updated advice and information from each. Scroll down for more (those not featured in the list either didn't respond to our enquiry or asked not to be featured).
British Gas
British Gas customers will no doubt see a rise to their bills once again. The energy giant has said fixing your tariff though means you won't have to worry about price rises in the months ahead. British Gas customers who on the following variable tariffs will see an increase:
- Safeguard Credit
- Safeguard PAYG v2
- Safeguard PAYG
- Flexi PAYG Mar 2023
- Standard PAYG
- Standard Credit
- Standard Variable
- Welcome to British Gas
- The Peoples Tariff
- Welcome Together
- Standard Variable HM
British Gas are urging anyone who is struggling with their energy costs to contact them immediately. The fuel giant has a scheme which gives people who have energy debt up to £1,500 to help them pay their bills and get back on track, and it could be a lifeline for many.
The British Gas Energy Trust Individual and Families Fund offers help to those who are in serious need. And you don't have to be a British Gas customer to apply either - although there's a strict criteria in order to get the fund. More on that here.
READ MORE: Everything you need to know about the energy crisis if you are a British Gas customer
Bulb
Bulb say they are operating as usual while in special administration, meaning it is tax-payer funded. Customer's credit balance and energy supplies are protected. Bulb say they offer a number of schemes to help customers who are struggling.
A Bulb spokesperson said: " We know that lots of people are worried about the rising cost of living and their ability to pay their bills. At Bulb, we’ll help people to apply for financial support and can look at different ways to pay, or longer repayment periods.
"We can also help to install free home energy efficiency measures and give advice on how to save energy. Customers may also be eligible for the Warm Home Discount, and everyone will receive £400 towards their energy bills through the government’s Energy Bills Support Scheme."
The energy company have also emphasised that it is important for customers to get in touch if they are worried about paying a bill or can't afford one. The say they will work with customers to assess their situation and do what they can to be flexible. This includes options such as changing the way they pay for their energy, setting up a payment plan, or helping them access financial support and benefits.
If you are thinking of switching away from Bulb then it's important to note that all tariffs at Bulb are protected by the energy price cap, and if you do want to switch away, Bulb don’t charge exit fees.
EDF
EDF customers who are on a standard (variable) tariff or deemed tariff will see their bills rise in line with Ofgem's new price cap. EDF prepayment customers are likely to see their tariff rise from the current maximum allowed under the price cap to the new limit. Customers on fixed tariffs will not see their prices change until after their current tariff ends.
An EDF spokesperson said: "At a time when rising energy bills are a huge concern for many of our customers, support packages have been top priority at EDF. As a business we have looked across our network to identify areas that we believe are pinch points for consumers, and done all we can to offer help."
EDF's support comes in the form of:
EDF Customer Support Fund:
Earlier this year, EDF say they doubled the financial support available to customers most in need by announcing an additional £5 million fund. This was aimed at those customers who were facing debt and financial difficulties, as well as providing support in buying energy efficient white goods to help reduce bills long term. More information on this can be found on their Customer Support Fund website.
Energy efficiency measures:
EDF say one of their priorities is to get as many homes as possible insulated to combat rising prices, as part of the Energy Company Obligation scheme (EC0). To do this, they say they have brought forward £20 million spend on energy efficiency measures for fuel poor households this year. Since 2018, their ECO installs have delivered £248million in lifetime bill savings to fuel poor homes.
Warm home discount:
Through the Warm Home Discount scheme, EDF say they have awarded £36 million in rebates to 250,000 customers last year. They are expecting this scheme to open up again later this year, when they will be committed to making full use of it for their customers.
Smart metering:
Accuracy is key at a time when every penny counts, which is why EDF say they see smart meters as a vital tool for customers looking to reduce their bills. At EDF they offer their customers access to their Energy Hub platform, giving them everything they need to see what is using the most energy in their home and offering personalised, tailored advice.
Third party partnerships:
EDF have partnerships with Citizens Advice Plymouth, National Energy Action, IncomeMax, LEAP and SHINE - all allowing them to provide financial advice to their customers. More information on this is on their Priority Services website.
OVO Energy
OVO Energy say they have a dedicated page on their website to help customers find urgent financial support. They have also said they are working with the with the government, Ofgem and their charity partners to help manage the immediate issues and create solutions that work in the long term for customers, and like all energy suppliers, are participating in the government’s upcoming £400 energy discount.
READ MORE: Everything you need to know about the energy crisis if you are an SSE customer
OVO have worked closely with MoneySavingExpert’s Martin Lewis, consumer bodies and charities, and other energy suppliers to set out actions which could be implemented before the winter. This included being clear on how exactly direct debits are set, working together to ask the regulator to shift the burden away from standing charges, creating a unified tool to help vulnerable customers get the support they need, and energy firms providing more direct support to consumer debt charities.
The energy giant has also said they have provided a package of support to Stepchange worth £2m. StepChange is a charity that’s doing important work to support vulnerable households. They have also partnered with Experian to offer the industry’s first Open Banking digital tool.
Scottish Power
Scottish Power customers on a standard (variable) tariff, pay as you go tariff or any default tariff will see their bills increase in line with the new energy price cap. The price cap increase doesn't apply to fixed price tariffs, so those customers will see their prices remain the same for the duration of their tariff. Once the tariff comes to an end, these customers will be moved to Scottish Power's default tariff, unless they choose another fixed price tariff or move to another supplier.
READ MORE: Everything you need to know about the energy crisis if you're a Scottish Power customer
Regarding the recent profits reported and the help for customers, a ScottishPower spokesperson said: "W e’re acutely aware of how the current cost of living crisis is affecting our customers and offer a number of services to support vulnerable customers struggling to pay their energy bills.
“We’ve created a dedicated Affordability Team, with 120 fully trained staff to help our most vulnerable customers. We’re also working in partnership with the Step Change debt charity to ensure customers who need additional support can be transferred directly to a Step Change advisor for free, independent debt advice that is based on their individual circumstances.
“We also signpost customers to our own Hardship Fund as well as to third parties who can offer additional support to customers, such as energy efficiency advice, benefit entitlement checks, replacement white good appliances, urgent heating repairs or replacements.”
Shell
Shell Energy customers who are on a flexible (standard variable tariff) will see a change to their energy bills. If you’re on a fixed energy tariff, these price changes won’t affect you until your fixed tariff ends. If you’re on a flexible tariff, the price cap increase will affect you. You may already have received a letter or email from Shell to inform you of the price changes.
Shell Energy have temporarily removed their fixed tariffs because wholesale costs are so high. They say providing customers with a fixed tariff right now would mean setting a price that's higher than the price cap. When wholesale prices stabilise, Shell Energy say they will go back to offering fixed tariffs online with 100% renewable electricity as standard.
The energy company has said they understand the impact higher prices is having on their customers. Shell say they have a £5 million support fund that they are using to help alleviate some of the financial hardship and account debt of their customers.
A spokesperson added: " We also have a number of solutions we can put in place to help households in financial difficulty. These include payment reviews, payment plans, and payment holidays.
"We encourage customers to get in touch with us if they are struggling to pay their bill, so we can understand their circumstances and put in place the most effective help for them."
Information on their help and support available can be found on the Here to Help pages.
Regarding their recent report of record profits, Shell say it isn't making any profit from supplying energy to British homes. A spokesperson explained: "Last year Shell Energy Retail made an operating loss of £83m.
"Shell’s profits come from other parts of its global operations, and it is using these profits to invest £20-25 billion in the UK energy system over the next 10 years. More than 75% of this is intended for low and zero-carbon products and services, including offshore wind, hydrogen, carbon capture utilisation and storage (CCUS) and electric mobility."
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