Social tariff take-up hits one million

Wednesday, 19 August 2009 06:00

Energy suppliers have exceeded their target to increase spending on social tariffs but customer groups said there is still a long to go on fuel poverty.

The big six energy companies spent £157 million on voluntary social programmes in 2008-09, nearly three times more than the previous year, beating the £151 million target.

Social tariffs allow customers on low incomes to sign up to a cheaper deal.

According to Ofgem, one million customers are signed up to a social tariff, up from 800,000 in October 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.

"We are particularly pleased to see the increase in the number of customers benefitting and encourage suppliers to continue to focus on how best to help their vulnerable customers who are struggling to pay their bills."

Garry Felgate, chief executive of the energy retail association (ERA), said: "Energy suppliers provide more direct help for their vulnerable customers than any other industry, and this report shows the commitment the industry has towards assisting those who struggle with their fuel bills."

However, Zoe McLeod, energy expert for Consumer Focus, said: "Social tariffs remain pitifully inadequate to tackle fuel poverty, with energy firms spending just half a percent of their turnover on them.

"Only a minority of the over five million fuel poor households in the UK receive help through these discounted rates."

The tariffs are too restrictive and often only available to customers aged over 60, Customer Focus said. The group is calling on energy firms to offer the tariffs to more people.

Customer Focus also wants the government to require all energy suppliers to offer social tariffs as their cheapest rate.

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