Energy firms should reduce impact of self-disconnection

Citizens Advice is urging the energy industry to adopt a series of measures to better identify vulnerable customers at risk of self-disconnection.

Research from the consumer advocate reveals 140,000 households (around 400,000 people) in Great Britain have gone without gas or electricity due to not having enough money to top up their prepayment meter (PPM).

Of the 140,000 households that self-disconnected, 50 per cent had someone with a mental health condition, 33 per cent included a young child and 87 per cent were in receipt of benefits.

Citizens Advice said suppliers and the government “must do more” to reduce the impact of self-disconnection on vulnerable customers.

It has suggested:

• Energy suppliers should review whether they have suitable systems to identify if a household is at risk of harm from self-disconnection before a PPM is installed.
• Systems and processes should be put in place to ensure vulnerable customers on PPMs are not left without supply.
• The Department of Work and Pensions (DWP) and job centres should improve coordination with suppliers to better support customers to prevent self-disconnection.
• Energy UK should use its Commission on Customers in Vulnerable Circumstances to review available support.

Gillian Guy, chief executive at Citizens Advice, said: “It unacceptable that so many vulnerable households are being left without heat and light.

“For some people self-disconnection is easily managed, but for many others it is an extremely stressful experience that can have harmful physical and emotional effects.”

She added: “While some suppliers are now offering support to prepayment meter customers, industry and the government need to do more. We need better mechanisms to identify vulnerable customers, better coordination between suppliers and government agencies and we need suppliers to ensure that when people’s health is at risk alternative ways to pay are offered.”

Citizens Advice suggested the “localisation” of emergency welfare and lack of coordination between private schemes has resulted in a “patchwork of support”, which is not easily accessible.

A recent survey by Echo Managed Services found customer awareness of the support schemes utility companies provide is “worryingly low”.

The Commission for Customers in Vulnerable Circumstances announced its Call for Evidence last week. An Energy UK spokesperson, added: “Drawing on the work of the Commission, Energy UK will be separately developing a new Vulnerability Charter to build on existing voluntary commitments and go further to support customers most in need.

“We would urge all organisations and stakeholders, including Citizens Advice, with views on this important and complex subject to submit their evidence and views for the panel of the Commissioners to consider.”

The Department for Work and Pensions have also been contacted for comment.