Energy Debt Relief Scheme moves forward

Utility Week have reported that the Secondary Legislation needed to enable energy suppliers to use Warm Homes Discount eligibility data for implementation of the Energy Debt Relief Scheme has been laid in Parliament.

If the process goes to plan, the powers could be confirmed as early as 2nd September.

Households eligible for the Warm Home Discount must be named on their energy bill by 23 August to receive it automatically this winter. Consumers can find out more on the gov.uk website.

The publication has also reported that the Department for Energy Security and Net Zero has also established a new team to improve data matching for targeted customer support.

Research published this week by the End Fuel Poverty Coalition and the University of York found that energy arrears ran at 14.3% among single-parent families, more than three times the national rate. The figures show 9.5% of Black, African, Caribbean and Black British households were behind, as were 6.6% of families with a disabled member, compared to just 1.9% where no one is disabled. Families with children were also far more likely to be in arrears than households without.

A spokesperson for the Coalition told Utilities Week:

“After such a long wait, it is good to see Ministers are finally taking steps to bring the much needed Debt Relief Scheme to life. With energy debt levels at such unsustainable highs and people worried about falling behind, let’s hope the momentum keeps going.

“As implementation nears, Ministers must keep a close eye on ensuring that the Scheme is not used to cover ‘anonymous’ debts where the responsible consumer can’t be identified, nor must it be used to settle cases where consumers have identified billing errors. Since energy firms have already received plenty of billpayer money through the bad debt allowance programme to address issues like these, we must ensure the new Debt Relief Scheme helps consumers who need it.”