2 Million Could Have Heating Cut Off
- BetterAskAdam.com
- Jan 28, 2024
- 7 min read
Energy prices rose again this month because the energy price cap, which is now what most of us pay, jumped 5%.
Citizens Advice says that around two million people on prepayment meters could have their gas and electricity cut off because they cannot afford to top up. [1]
However, there is some good news for a lot of households as prices are predicted to fall in the spring. While rising energy bills are a big worry for many people, remember that each Price Cap only last three months, and the Cap is predicted to fall again in April 2024.
The energy price cap is set at £1,928 a year for a typical household who use gas and electricity and pay by Direct Debit. This will remain in lace until March. The price cap does not limit your total bill, which depends on how much energy you use. The way you pay for your energy, where you live, your meter type and your consumption will affect your energy bill.
The level of the energy price cap is based on typical household energy use and reflects recent falls in wholesale energy prices.
Scams
Over 40 million people have been targeted by scammers amidst the cost-of-living crisis. Out of this, 12% of scams are related to energy - so that is 5 million people targeted by criminals pretending to help people get a better energy deal [2]
People may be even susceptible to this kind of crime because of the rise in energy costs, which is hurting a lot of people.
What To Look Out For
OFGEM Fraud
A thief contacts you, claiming to be from the energy regulator Ofgem. They may ask you to change your bank details or provide personal information to receive funding or cheap energy.
Energy Rebate Scams
Thieves contact you claiming to be dealing with your £400 government energy bill rebate, known as the Energy Bills Support Scheme - which gave every household a £400 discount on their energy bills for winter 2022 and ended in 2023 - to trick people into handing over their details. [3]
Special Payments
A thief calls you pretending to administer payments to help people with disabilities or special rebates for older customers.
How To Check
Here is the advice from the industry regulator, Ofgem, about what you should do if you are contacted by anyone you think might be pretending to be them.
Reject, refuse or ignore contact from ‘Ofgem’ that looks or sounds unusual, such as a request for your bank or personal details. We never ask for this information.
Check email addresses. Any emails to or from Ofgem always end @ofgem.gov.uk.
Check branding. The Ofgem logo will always be present in our communications. It should never look stretched, blurry or distorted.
Protect. Only criminals will try to rush or panic you.
Contact your bank immediately if you think you’ve fallen for a scam. Report it to Action Fraud if you live in England or Wales, and Police Scotland in Scotland.
My own advice is if anyone contacts you asking for details - say you will call them back, Do NOT use the number they give you. They may say that all you have to do is look at your mobile and see the number they are calling from, matches the listed number for your energy supplier or for Ofgem. Thieves can manipulate their phones to show a fake number - so this is NO guarantee that the call is genuine. The best thing to do is ask for their name and department and then separately call the company they claim t be from and ask to be put through to them.
Help With Your Energy Bills
The £150 Warm Homes Discount
The Warm Homes Discount is not paid to you - it’s a one-off discount on your electricity bill, between October 2022 and March 2023. The discount will not affect your Cold Weather Payment or Winter Fuel Payment.
If your electricity supplier is part of the Warm Home Discount scheme, then you'll get the payment automatically if you or your partner receive the Guarantee Credit portion of Pension Credit. One of you must be named on your bill. Alternatively, if you're in receipt of another 'qualifying benefit' and are considered to have high energy costs, then you'll also receive an automatic payment. Either way, you should receive the discount automatically if you're eligible, so you don't need to apply for it.
You only need to apply if you’re on a low income in Scotland - contact your energy supplier to apply.
If you might be eligible, you’ll get a letter by early January 2024.
If you do not get a letter and you think you’re eligible, you must contact the Warm Home Discount Scheme before 29 February 2024. [5]
The Winter Fuel Payment
If you were born on or before 25 September 1957, you could get up to £600 to help with your bills in winter this year. The exact amount depends on your age and whether other people in your household also qualify.
f you've received it before, you should get your Winter Fuel Payment automatically this year.
If you claim State Pension or another social security benefit (not including Housing Benefit, Council Tax Support, Child Benefit, Universal Credit or a deferred State Pension), you should also be paid automatically.
The Winter Fuel Payment is NOT means tested - meaning it doesn't depend n whether you ear a lot or a little. [6]
Cold Weather Payments
£25 for each 7-day period of cold weather between Nov 1 and March 31. Eligible if you're on selected benefits that include Pension Credit, & Universal Income. If you live in Scotland you cannot get Cold Weather Payments. You might get an annual £50 Winter Heating Payment instead. [7]
Great British Insulation Scheme
You may be able to get free or cheaper insulation to reduce your home’s energy bills depending on your council tax band and your energy performance certificate. See the Gov website for full details.[8]
Shopping Around
The mantra of most finance journalists is "shop around". That of course is usually good advice and also applies here - but there is a but....
Despite efforts from the regulator to cut down on confusion marketing, actually shopping around for a good deal at the moment is not easy.
The best advice is to go to one of the comparison websites. The Ofgem-accredited price comparison websites at the time of going to press are:
The problem is that most energy customers are currently on a standard variable tariff (SVT) and pay at a level set by the price cap for each kilowatt hour (kWh) they use. Therefore there tend not to be great rates around.
One of the things to consider is whether ti move to a fixed-price deal. Fixed tariffs can offer benefits such as knowing what your unit rate will be in advance, and this can help with household budgeting. There can be drawbacks, however, including having to pay exit fees if you want to change your deal.
Ofgem have a guide to switching here.
Additional Help
You may be able to get up to 5 payments to help with the cost of living if you’re getting certain benefits or tax credits.
You do not need to apply. If you’re eligible, you’ll be paid automatically in the same way you usually get your benefit or tax credits. This includes if you’re found to be eligible at a later date.
If you have had a message asking you to apply or contact someone about the payment, this might be a scam.
These payments are not taxable and will not affect the benefits or tax credits you get.
You may be entitled to up to 3 Cost of Living Payments of £301, £300 and £299 if you get any of the following benefits or tax credits on certain dates:
income-based Jobseeker’s Allowance (JSA)
income-related Employment and Support Allowance (ESA)
Income Support
Pension Credit
Universal Credit
Child Tax Credit
Working Tax Credit
The payment will be made separately from your benefit payments.
What To Do If You Are Struggling
If you’re struggling to afford your gas and electricity bills, contact your supplier to discuss ways to pay what you owe them.
Your supplier has to help you come to a solution. You should try to negotiate a deal that works for both of you.
If you don’t try to negotiate with your supplier, they might threaten to disconnect you. Check what to do if you’ve been told your energy supply will be disconnected.
Are They Allowed To Disconnect Me?
If you haven’t paid a bill after 28 days, your supplier may contact you about the possibility of disconnecting your gas or electricity supply. It’s rare to be disconnected as your supplier will usually offer to install a prepayment meter instead.
If you’ve missed payments because of coronavirus, you should explain this to your supplier. They might agree not to disconnect you. For example, tell them if your income has been affected by long-term symptoms.
If your supplier decides to disconnect you, they must give you a chance to pay your debt through a payment plan. If you haven’t already, you should talk to your supplier about your repayment options. If you want specific advice you might want to call Citizens Advice Bureau who do. not charge you for the advice. You can see how to contact them here (https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/struggling-to-pay-your-energy-bills/)
Can They Force Me To Have A Prepayment Meter
Energy suppliers have been banned from forcibly installing prepayment meters for people over 75 with no support in their house and homes with children aged under 2,
Ofgem's insists that energy companies adhere to the following rules about the forced installation of pre-payment meters:[9]
Suppliers must:
Make at least 10 attempts to contact a customer before a prepayment meter is installed
Carry out a site welfare visit before a prepayment meter is installed
Refrain from all involuntary installations for the highest risk customers including:
Households which require a continuous supply for health reasons, including dependence on powered medical equipment
Households where all occupants are aged 75 years and over (if there is no other support in the house)
Households with children aged under 2 years old
Households with residents with severe health issues including terminal illnesses or those with a medical dependency on a warm home (for example due to illness such as emphysema, chronic bronchitis, sickle cell disease)
Where there is no one within the household that has the ability to top up the meter due to physical or mental incapacity
Audio or body cameras must be worn by the lead supplier representative present on all warrant installations or site welfare visits to check for vulnerabilities ahead of an involuntary installation or remote mode switch. All audio and footage will be available for audit
Give a £30 credit per meter (or equivalent non-disconnection period) on all warrant installations and remote switches as a short-term credit/measure to remove the risk of customers going off supply at the point of PPM meter installation.
Re-assess the case once a customer has repaid debts owed. Suppliers must contact the customer to offer assessment of whether a prepayment meter remains the most suitable and preferred payment method of choice for consumers; if any prepayment meter customer is clear of debt and wishes to move off their prepayment meter (understanding any changes in the tariff they will pay), the supplier must agree where the customer passes any required credit checks.
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