As the UK braces for another winter of sky-high energy bills, the body representing the nation's energy suppliers has a modest request for the government: please help the people who can't afford to heat their homes. In a shocking twist, they're not asking for themselves.
Energy UK, the trade association for the industry, says that stubbornly high prices over the last few years have left some people needing 'emergency support' over and above the existing £150 Warm Home Discount. That's the one-off rebate that currently helps about six million of the most vulnerable households. But Energy UK notes there are another 2.5 million people who need a hand because they have a medical condition or live in a draughty home that guzzles more energy.
On Wednesday, Ofgem will announce the new energy price cap for October, and Cornwall Insight predicts it'll jump another 4%. That follows a rather unpleasant 13% rise in July. The driving forces? The ongoing Middle East conflict, which started in February when Iran went to war, and heatwaves across Europe that have everyone cranking up their air conditioning. Because nothing says 'climate crisis' like using more energy to stay cool.
The price rise will also outweigh the impact of Prime Minister Andy Burnham's VAT removal on household electricity bills, which takes effect in October. Yes, the PM is trying, but it's like bringing a water pistol to a wildfire.
Energy UK's chief executive, Dhara Vyas, says suppliers are doing all they can, but 'record levels of debt show how the current system is failing to provide the right support to those in need.' Indeed, at the end of last winter, customers owed suppliers a record £4.7bn. That's a lot of unpaid bills.
So, Energy UK has a plan: a new 'social discount' scheme that would cost £1.9bn - nearly double the current one - and could offer up to £450 in support to some households. The idea is to combine data on income, health, and energy consumption to target help more precisely and adjust it as prices change. Because apparently, in 2024, we still can't share data between government departments without raising eyebrows.
The proposal might raise questions about privacy and taxpayer money, but Adam Scorer, chief executive of National Energy Action, is all for it. 'We desperately need a new approach,' he says. 'The Warm Home Discount has risen by only £10 over the last decade.' That's not exactly keeping up with inflation, is it?
So, as the price cap hits a three-year high and winter looms, the industry is asking the government to step up. Because while the last Conservative government threw £40bn at the problem during the last spike, this time around, we're all hoping for a more sustainable solution. Or at least one that doesn't involve choosing between heating and eating.
In related news, many people are still unaware they're eligible for the £150 Warm Home Discount. So, if you're struggling, it might be worth checking. You know, before you resort to wearing your coat indoors.
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