Energy is essential for everyone, but it is particularly important for older people, those with certain medical conditions or the housebound. The UK energy supply industry recognises that some customers have special circumstances and offer tailored services to accommodate them.

There are processes in place to help people in other special circumstances, such as people with disabilities, those on low incomes and customers who don’t speak English.

A Supply Licence Review conducted by Ofgem in consultation with UK energy suppliers between 2006 and 2007, resulted in a more focused obligation on suppliers to protect customers who have special needs. Suppliers must provide special services for the physically vulnerable, including a password scheme and a free meter moving service. The Review also tightened the criteria on eligibility for free gas safety checks, which will enable suppliers to focus their resources on customers who are most likely to be at risk.

Fluctuating energy prices continued to be an issue for energy suppliers and customers during 2007. The wholesale price paid by suppliers dropped briefly and as a result consumer prices reduced.  However, there was upward pressure on energy prices again towards the end of 2007. 

Affordability continues to be a key social issue for energy suppliers and their customers. The generally accepted definition of Fuel Poverty is when a household has to spend 10% or more of its income on energy and usually occurs as a result of three variables:

• The condition and thermal efficiency of the dwelling
• The disposable income of the householder
• The cost of fuel

Tackling fuel poverty effectively needs a combined and sustained effort from Government, who have responsibilities to ensure low income households receive the relevant benefits; housing providers, who have a responsibility to maintain the housing stock and report on its condition, and energy suppliers. 

Outside any statutory requirement, the industry continues to play its part in addressing fuel poverty through measures such as the roll out of smart metering technology, targeting energy efficiency spend, and establishing charitable trusts or social tariffs. These steps, together with Government programmes and ongoing improvement of housing stock, should help to reduce fuel poverty over time.

Willie MacDiarmid, Impact Leader