Social Action Plan Newsletter 4
Energy Efficiency Commitment Social Action Plan
The Energy Efficiency Commitment (EEC) will officially begin on 1 April 2002.
This three-year programme places an obligation on suppliers with 15,000 or
more domestic customers to achieve improvements in energy efficiency.
Newsletter
D
EFRA is responsible for the 50% of the energy savings must ‘Energy Efficiency Commitment January 2002 Issue 4
EEC and has set an overall be targeted at customers receiving Administration Procedures’
target for energy savings of certain income-related benefits or December 2001, can be found at Message from
62TWh. It is Ofgem’s job to tax credits. Suppliers will have the www.ofgem.gov.uk/projects/en
administer the programme, includ- option of trading energy savings
and obligations with each other.
ergyeff_index.htm the editor
ing setting the energy saving tar- To recognise the start of the ith the start of a new year
gets for each gas and electricity
supplier. These targets were in
place by 31 January and will then
be adjusted each year of the EEC,
Features in national
newspapers, on the radio
EEC and the scale of the pro -
gramme, the Energy Saving Trust
is sponsoring a national advertis-
ing promotion in February.
W the Social Issues team is
looking forward to a pro-
ductive twelve months. Ofgem’s pro-
posed corporate strategy and plan,
according to customer numbers. and on-line will be used Features in national newspapers, published in December, sets out the
Suppliers will be required to to encourage customers’ on the radio and on-line will be main themes of Ofgem’s work in
meet their savings target by to take advantage of used to encourage customers to 2002-2005. One of our priorities is
encouraging or assisting domestic the energy efficiency take advantage of the energy effi- our continuing work with suppliers,
customers to take up energy effi- ciency schemes and measures government and other interested par-
schemes and measures
ciency measures in their homes. available from energy suppliers. ties to assist the fuel poor.
available from energy
Ofgem will approve each scheme. A dedicated freephone helpline In October last year we published Mark Parnell presents London Electricity’s research findings
Another feature of Ofgem’s suppliers will run throughout February guidance for electricity distributors
administrative role is to determine which customers can call for infor- and gas transporters on the produc-
Ofgem is required to monitor
which measures qualify and the
resultant energy savings. This data
has been collected from recog-
nised sources such as the Building
each supplier’s performance and
report to the Secretary of State in
July 2003, 2004 and 2005 and to
mation. The number is 0800 587
2128. Their details will be passed
on to their energy supplier(s) who
will follow up the enquiries with
tion of a number of codes of practice
and statements. These cover a range
of services for vulnerable customers.
New research
Research Establishment. A key fea-
ture of the EEC is that at least
publish this.
Ofgem’s decision document,
information on the schemes and
grants available to customers.
These codes have been approved by
Ofgem for all the major companies
and are now being published.
results published
The results of two more research On 10 January 2002, Ofgem hosted the launch of
Social Issues team contact details: projects were published at an Ofgem
sponsored event recently (see article
opposite). The results of both proj-
two reports aimed at helping vulnerable customers
and alleviating fuel poverty.
L
Virginia Graham Barry Thomas ects have been valuable in clarifying ondon Electricity launched a research was positive, with many
issues, and in identifying next steps report entitled “Project VC” feeling that the research provided
Director - Social and Environmental Social Obligations Manager (vulnerable customer) which a good starting point for further
and possible future work.
Affairs barry.thomas@ofgem.gov.uk Following on from the Energy highlighted the benefits to suppli- debate and future projects.
virginia.graham@ofgem.gov.uk 020 7901 7237 ers of working in partnership with
Efficiency Summit held last year we The main findings of London
020 7901 7039 Local Authorities, agencies, and
are conducting a ‘mystery shopper’ Electricity’s research, which was
local and national charities to
exercise to test the quality of energy carried out in London and the
Graham Knowles identify efficient and cost effective South West, were:
efficiency advice provided by suppli-
Dave Barnes Social Issues Analyst opportunities to help vulnerable
ers. We have begun work with ener- - partnerships can help break
Head of Social Issues graham.knowles@ofgem.gov.uk gywatch to draw up a set of best customers. Scottish and Southern down the apathy that can exist
david.barnes@ofgem.gov.uk 020 7901 7103 Energy launched a report on the
practice guidelines that focus suppli- (among agencies) towards fuel
ers on preventing customers from attitudes of prepayment meter poverty
020 7901 7034 customers and experience with
falling into debt. Last but not least, - the success of partnerships can
Sukaynah Muhammad we have been working with a groupswitching from prepayment to
be affected by a range of factors
Anton Draper Social Policy Officer other payment methods.
of major suppliers to mount a trial to such as good management of the
Deputy Head Social Issues sukaynah.muhammad@ofgem.gov.uk allow prepayment meter customers At the launch, attended by relationship and the setting of
energy suppliers and consumer
in debt to transfer their gas and elec- clear objectives, and
anton.draper@ofgem.gov.uk 020 7901 7230 tricity suppliers. bodies, the research findings were
020 7901 7460 - the National Health Service can
- Barry Thomas discussed. Response to the - continued on p.2
Social Action Plan Newsletter 2 3 Social Action Plan Newsletter
Debt prevention guidelines Conferences Fuel poverty Ofgem monitors
quality of energy
to be introduced and Ofgem efficiency advice
O
fgem and energywatch
have joined forces to
The group is chaired by Peter
Lehmann, Chairman of the Energy
seminars strategy launched ver the winter, Ofgem is con-
draw up a set of best Saving Trust and the Fuel Poverty
O ducting a ‘mystery shopping’
T
practice guidelines that focus sup- Advisory Group. Relevant agencies, he Government published its administers the new Energy exercise to test the quality of
Promoting energy services
pliers on preventing customers industry and Government are repre- Fuel Poverty Strategy in Efficiency Commitment (EEC) on advice provided by suppliers. The
falling into debt. This follows up sented on the group. In November, Ofgem hosted a November 2001. Ofgem wel- behalf of the Government. The project, which is being conducted for
Social Action Plan research spon- The group met for the first time Energy Services workshop for repre- comes the Strategy, which aims to EEC will see a large number of Ofgem by the research company,
sored by Powergen (Scope for in January and will hold further sentatives from fuel suppliers, eliminate fuel poverty amongst energy efficiency measures New Perspectives, aims to establish
Better Prevention and meetings before guidelines are Government and consumer bodies to vulnerable groups by Ofgem welcomes and installed in fuel poor the quality and accuracy of advice
Management of Debt). issued for consultation. consider what more can be done to 2010. Current esti- and vulnerable house- provided by suppliers. There is a par-
strongly encourages
The objective of the project is to: As part of the consultation promote energy services in the mates suggest that 4 industry initiatives to holds over the next ticular emphasis in the research on
domestic sector. million UK house- three years. the needs of low income customers.
- identify good practice in the pre- process, energywatch hosted work- tackle fuel poverty. A
vention of debt and disconnection, shops in Cardiff, Glasgow and Among topics of discussed was holds are in fuel number of initiatives Ofgem welcomes New Perspectives will compile a
and the management of debt recov- Southampton during January, to hear the lack of consumer awareness of poverty and about 3 have been launched and strongly encour- report on the findings which Ofgem
ery the views of local agencies who have the energy services concept. The use million of these recently to target vul- ages industry initiatives will publish in the spring. New
experience of dealing with debt of the Energy Efficiency households are nerable customers and to tackle fuel poverty. Perspectives will present their find-
- develop and publish good practice defined as “vulnera- help them keep warm. A number of initiatives
related problems. Commitment as an incentive on sup- ings at an event hosted by Ofgem.
guidelines for both suppliers and ble” (households have been launched
customers and pliers to provide energy efficiency The project follows on from last
measures through an energy service including children, recently to target vulnerable cus- summer’s “Energy Efficiency
- establish criteria for monitoring the elderly, the disabled and tomers and help them keep warm.
package was also discussed. Summit”, where Ofgem invited key
and reporting on industry perform- chronically sick). These include new tariffs, such as players to discuss issues arising from
ance following the introduction of National Housing Federation
Ofgem works in a number of TXU’s Staywarm and Powergen’s Dr Brenda Boardman’s report,
new guidelines conference
ways to support the Government’s Age Concern Energy Services; spe- “Energy Efficiency and the
Ofgem and energywatch have set fight against fuel poverty. Lower cial banking facilities to allow Disadvantaged”. An executive sum-
In January Charles Hargreaves,
up an advisory group to assist with
Ofgem’s Head of Energy Efficiency, energy prices from competition access to cheaper fuel such as mary of the report can be found at
the development of the guidelines. and regulation have lifted around Scottish Power’s Royal Bank Key www.ofgem.gov.uk/sap/research_ee
addressed the National Housing
Federation Chief Executive’s one million households out of fuel Account and British Gas’s Jigsaw .pdf. The project also links with
schemes; and schemes to link
New research results published Conference in Solihull. His talk was
on balancing social and economic
poverty between 1996 and 2000.
Ofgem set out its priorities under energy efficiency measures to the
Ofgem’s monitoring of suppliers’
codes of practice obligations. Latest
continued from p.1
considerations in tackling fuel its Social Action Plan, which fuel poor, such as npower’s Health data, which can be viewed on the
play a key role to help identify vul- mailshots encourages companies to improve Through Warmth, British Gas’s
poverty. Ofgem website at
nerable customers. - improved literature for prepay- their services to vulnerable cus- Warm-a-Life and Seeboard’s
With many Chief Executives of www.ofgem.gov.uk/sap/key_indica-
In light of the report Ofgem will ment customers led them to be tomers. Additionally, Ofgem EnergyCare Network. tors.htm, suggests that around
consult with relevant agencies better informed about how their Housing Associations unaware of
Ofgem’s work, Charles described 25,000 customers per quarter contact
seeking views on ways forward. meter worked and other options
Helping customers in debt
the role of energy suppliers in pro- suppliers’ advice lines and that about
The main findings of the available to them. 10,000 customers per quarter receive
viding energy savings through the
Scottish and Southern report, In light of the research Ofgem other forms of energy efficiency
Energy Efficiency Commitment . ecember saw the beginning customer debts to be transferred
which was carried out in Northern
Scotland and Southern England,
were:
- the majority of prepayment
will be asking suppliers how they
intend to review their processes.
Ofgem will also continue to moni-
tor the number of customers
Many at the conference were sur-
prised by the scale of the work
required to meet the target of
62TWh. Housing Associations can
D of a three month trial to
allow prepayment meter cus-
tomers in debt to transfer their gas
between suppliers and it is governed
by a code of practice developed by
the working group.
information from their supplier.
If you would
changing from prepayment to and electricity suppliers. Under Ofgem is encouraged by the
customers had made a conscious
credit terms and continue to pur-
benefit from schemes being offered existing arrangements customers progress suppliers have made in
like to receive a
decision to use a prepayment by suppliers. who have an outstanding debt can be
meter and were satisfied with it sue improvements in information
given to prepayment customers Papers on these events and others prevented by their current supplier
agreeing to a trial to run from 1
December last year. We will be fol-
newsletter direct
- a significant minority - largely
owner/occupiers with bank about the operation of their hosted by Ofgem can be found at
http://www.ofgem.gov.uk/sap/sem-
from switching to another supplier. lowing progress closely. Our overall please email:
meters. The Debt Blocking and objective is to seek the agreement of
accounts - were responsive to inars.htm Assignment Trial involves all the all domestic electricity and gas sup-
change A note of the event and copies main energy suppliers and is a result pliers to an amendment to the stan- sap@ofgem.gov.uk
- this minority tended to purchase of the reports can be obtained of co-operation across industry as dard licence conditions, making the
credit less frequently and could be from the Ofgem website at part of a working group. The trial process permanent.
targeted by suppliers through http://www.ofgem.gov.uk/sap will test a new process that allows