Are Social Energy Tariffs the Solution to Fuel Poverty?

Article Written By: Russell O Sullivan

So what exactly is a social energy tariff? Itandrsquo;s generally a term for a special rate offered to vulnerable people who have difficulty paying for the gas and electricity that they need. The eligibility criteria for social tariffs vary between utility providers. Most gas and electricity suppliers make their social tariffs available to the elderly, those on benefits or low incomes, and the andlsquo;fuel poorandrsquo;. Fuel poverty is when at least 10% of your income is spent on gas and electricity. So if you think that you may qualify, itandrsquo;s worth contacting your current energy supplier to find out for certain.

Social energy tariffs available from UK Energy Suppliers

* British Gas has a Winter Warmer scheme for people in receipt of disability or attendance allowance, or pension credit. This provides payments of up to andpound;30 each for gas and electricity during winter. The company will also offer its lowest standard gas and electricity tariffs to vulnerable customers.

* E.On offers a Stay Warm tariff which fixes gas and electricity at a low rate for a year. To qualify, you must be over 60, living in a house with a maximum of three bedrooms, and paying for both gas and electricity by direct debit.

* EDF Energy provides a 15% discount on current standard tariff prices to the fuel poor or people who qualify for income support or pension credit.

* Npowerandrsquo;s Spreading Warmth social energy tariff will deliver a discount of andpound;250 per annum to dual fuel customers who are most in need (andpound;125 for single fuel users).

* Scottish and Southern Power gives discounts to the fuel poor, those on benefits and people with special needs via its Energy Plus tariff. It estimates that this will be equivalent to a 30% reduction in bills for a family in a three-bed semi.

* ScottishPower suggests that eligible customers on its Priority Services Register (for pensioners and those with certain disabilities) apply for their Carefree Plus tariff, which offers discounts of up to andpound;122 per annum.

In addition to the andlsquo;Big 6andrsquo; energy providers, Atlantic Electric andamp; Gas, Countrywide, EBICo, Ecotricity, Good Energy, Green Energy, Sainsburyandrsquo;s Energy, Scottish Hydro Electric, Southern Electric, Spark Energy, Swalec, Telecom Plus, Union Energy and Utilita also have their own Social Tariffs.

The future of social energy tariffs

Industry regulator Ofgem has published new guidelines on social energy tariffs. Previously, social tariffs were only required to be as cheap as the direct-debit tariffs provided by the energy supplier. However, this meant that the most vulnerable customers were often paying more than people on low-rate internet deals. The social energy tariffs are now required to be at least equal to the utility companyandrsquo;s cheapest deal, which includes online-only tariffs.

There is also a possibility that social tariffs will be defined by law. At the moment, the definition of a social tariff is decided individually by each gas and electricity supplier. This means that trying to work out which energy company provides the best deal is difficult, as eligibility criteria and costs vary. The government may enforce minimum standards in the future.

The Winter Fuel Payment

People aged 60 or over may get a Winter Fuel Payment to help them keep warm in winter. This tax-free annual benefit is normally paid from November, with most payments made by Christmas. Qualifying households will receive between andpound;250 and andpound;400 towards their winter fuel bills, and the money will be paid in the same way as their pension.

Other ways to lower utilities bills

If you arenandrsquo;t eligible for a social tariff, or if you are looking for another way of saving money on your utility bills, itandrsquo;s also a good idea to see if switching energy provider will reduce your gas and electricity costs. Weandrsquo;ve all been affected by gas and electricity price rises, but if youandrsquo;re having serious problems with paying your utility bills, there is plenty of help available if you know where to look. Donandrsquo;t suffer the cold in silence; make sure that your energy supplier is giving you the assistance you need to heat and light your home.

About the Author

To find out more about the Energy Tariff Solutions see http://www.confused.com/gas-electricity

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