Energy Tariffs

Social Tariffs

Article updated: Tuesday 26 May, 2009

All energy providers have to offer social tariffs to help their most vulnerable customers cope with the high costs of gas and electricity. And according to new Ofgem rules, all social tariffs must equal the supplier’s cheapest deals.

Suppliers also agreed to increase their collective spend on social tariffs by £225million between 2008 and 2011 - so if you’re struggling to keep up with the rising cost of heating your home, why not talk to your provider and see if you can be moved to a cheaper tariff?

• 1. British Gas
• 2. E.ON
• 3. EDF
• 4. npower
• 5. Scottish Power
• 6. Scottish & Southern

1. British Gas

The Essentials tariff from British Gas (www.britishgas.co.uk) is the UK’s largest social tariff, aimed at reducing the gas and electricity bills of 750,000 of the company’s most vulnerable customers.

The aim is to offer vulnerable customers the lowest standard gas and electricity prices - which are normally inaccessible to people who don’t have a bank account. And all those customers who are registered for the British Gas Winter Rebate scheme will automatically be moved onto the Essentials tariff.

National Energy Action (NEA), the leading fuel poverty charity, applauded the tariff. “A new social tariff aimed at cutting gas and electricity bills for up to 750,000 of British Gas’s most vulnerable customers will see their energy bills drop by around £307 per annum,” said William Gillis, NEA chief executive.

The Essentials tariff provides extra help to vulnerable customers, particularly those who use Pay As You Go Energy meters, which despite helping people on low-incomes to budget, are often a more costly way to pay for gas and electricity.

2. E.ON

E.ON (www.eonenergy.com) social tariff StayWarm is specifically designed to help vulnerable customers over the age of 60. It is a fixed-price tariff that keeps costs the same for the 12-months after you’ve signed up.

The price you pay depends on how many people there are in your home and the number of bedrooms it has. All StayWarm customers must pay by monthly direct debit and the tariff is only available to those who are, or have someone over 60 years living in their home; have three bedrooms or less; have four or less people living in their home and take both gas and electricity from E.ON.

All StayWarm customers who are eligible for the government’s Warm Front scheme are automatically referred for energy efficiency advice and grants.

E.ON also offers free cavity wall and loft insulation to anyone over the age of 70 or those receiving income support, housing benefit, council tax benefit or income-based jobseeker's allowance - whether they are a customer or not.

Customers over the age of 60 can also switch to the Age Concern tariff that could save them an average of £69 along with a load of additional energy efficiency and safety gadgets such as energy saving light bulbs and carbon monoxide detectors.

3. EDF Energy

EDF (www.edfenergy.com) Energy Assist tariff is aimed at those customers experiencing fuel poverty - where they have to spend more than 10% of their household income on gas and electricity - or those receiving income support or pension credit.

Energy Assist gives vulnerable customers a 15% discount on EDF’s standard energy prices and around 57,000 customers currently benefit from this reduced tariff.

The tariff is applied directly to those customers with standard or Economy 7 meters while those with prepayment or complex metering will automatically receive a rebate each year.

4. npower

If your annual income is less than £13,500 you might be eligible for the Spreading Warmth tariff from npower (www.npower.com), which offers discounts to customers on a low income and with someone in the household aged over 60, disabled, suffering from a chronic illness or under 16 years old.

The Spreading Warmth tariff delivers a dual fuel discount of up to £250 (£125 per fuel) that is applied quarterly in discounts of £31.25 per fuel.

If you’re not eligible for the Spreading Warmth tariff but are struggling to keep up with your bill payments you can still get help from npower’s First Step scheme. First Step advisors will work with you on a one-to-one basis to help you manage your bills and set up a personal payment plan that suits your circumstances.

You will also be evaluated to see if you’re eligible for help from the Fits Step fund which could write off some, or all, of your energy debt as long as you continue making regular, agreed payments.

5. Scottish Power

Scottish Power (www.scottishpower.co.uk) Carefree Plus social tariff, offers eligible customers a saving of up to £112 a year on their energy bill. Customers on the new tariff will also be able to have free insulation work done on their homes and receive a Benefits Health Check to ensure that they’re receiving all the help they’re entitled to - current estimates from the National Office of Statistics show that £9.4million of benefits goes unclaimed every year.

Scottish Power is also offering to offset the impact of increases over the winter months for vulnerable customers on its Carefree Priority Services Register. This will take the form of an average credit of £22 for gas and £9 for electricity to these customers’ accounts.

Scottish Power is also the only energy provider to set prepayment meters - which are often used by those on the lowest incomes - at a lower cost than standard quarterly credit prices.

6. Scottish & Southern

EnergyPlus Care from Scottish & Southern (www.scottish-southern.co.uk) offers those customers experiencing fuel poverty a 20% discount on their current fuel prices - regardless of which payment method they use.

As well as the discounted energy, customers on Scottish & Southern’s social tariff will receive free energy efficiency advice to help them save on future bills, a free benefits check to make sure they’re not missing out on any help they’re entitled to and even free energy efficiency measures, from low-energy light bulbs to a free fridge or a discounted fridge/freezer.

Certain households might also be eligible for a free annual gas safety check - saving them between £60 and £90 according to gas safety specialists Corgi.

Wheelchair bound pensioner Dora Kennedy, 79, had been struggling with her high Economy 7 electricity bills, until she was advised by EnergyChoices.co.uk to sign up to a social tariff.

Dora, who suffers from the rare, life threatening illness Addison’s Disease, was told by her energy supplier Scottish Power (www.scottishpower.co.uk) that her direct debit was assessed as £46 a month. As her only source of income is a small government pension and a severe disability premium, received through her severe arthritis in her lower spine, hips and knees, Dora was shocked about the price of her energy bills.

Cared for, bathed and fed by nurses in an Extra Care apartment block in Weston-super-Mare, her excessive bills were a worry: “As I live alone and never have anyone staying over, £46 a month seemed unreasonably high to me.”

Dora hadn’t heard of a social tariff before using the site, and was unaware of the benefits of switching. After a quick call to Scottish Power she’d signed up to a new tariff and lowered her bills.

Dora agrees that more needs to be done to promote the cheaper services available to those who need them the most. She said: “Most of the residents here in my apartment block - all elderly and frail - to whom I have mentioned my cheaper social tariff have never heard of it, - and ask me how I found out about it. It’s because I keep my eyes and ears open; while my body may be ready for the scrapheap, my brain is ready for Mastermind!”

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