Big six suppliers increase social spend nearly threefold
19 August 2009
Britain's big six energy suppliers spent £157 million on voluntary social programmes in 2008-09, a near three-fold increase compared with 2007-08 (£57 million) according a report from Ofgem.
Most was spent on social and other discounted tariffs for vulnerable and fuel poor customers. Suppliers have exceeded their spending target for 2008-09 by £59 million, the regulator has reported.
The number of customer accounts on social tariffs grew to one million by March 2009 from 800,000 in October 2008, it has emerged.
In the 2008 Budget the government announced a three-year commitment by energy suppliers to increase their spending on social tariffs and other social programmes.
Ofgem's report on the first year of the suppliers' commitment shows that each supplier met its target for 2008-09 and jointly they exceeded the target of £151 million set for the end of the period in 2010-11.
The report also indicated that vulnerable customers on social tariffs received £130 million worth of discounts in 2008-09 and that all suppliers (with the exception of Eon) now have a social tariff that meets the new stricter definition set by Ofgem in July 2008
Maxine Frerk, Ofgem's director of governance, consumer and social affairs, said: "This is a very encouraging outcome for the first year of the commitment, especially in the current tough economic climate".
In a statement Consumer Focus welcomed the increases as "a step in the right direction". However the watchdog warned that the funding was still inadequate "given that already high fuel poverty levels are set to spiral further as energy prices rise to pay for essential climate change prevention measures".
Garry Felgate, chief executive of the Energy Retail Association (ERA), said: "The report indicates suppliers have made a great start to this three year programme".
Source:
Utility Week
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