Complex energy market exacerbates fuel poverty

The make up of the energy market is adding to the levels of fuel poverty in the UK, new research by The Committee on Fuel Poverty concludes.

The committee has called for increased advice and energy information to be made available to help fuel poor households navigate “the complex energy market”.

In particular, the governmental advisory body has called for the creation of a “single point of contact for fuel poor households to access support”. The group also calls for “stricter enforcement of energy suppliers to provide better customer service and information”.

The report adds: “Difficulties navigating the complex energy market, and the support within it, worsens problems with affording energy.

“Many struggling households find it difficult to contact their supplier to ask for help.

“Furthermore, many in fuel poverty do not see their supplier as their first contact point.”

It continues: “People need to understand how energy efficiency affects their energy bills and the practical steps to improve energy efficiency for their homes.

“To facilitate this, they need to be aware of and understand what support is on offer to them. This would enable those most in need to receive the support they are eligible for and ensure support does not go unclaimed.”

The committee is also calling for a streamlined set of support measures to be developed across government departments.

However, it warns that “whilst the complexities surrounding fuel poverty may offer more opportunities to intervene, it is important that the policy landscape does not echo this complexity”.

“Policies should be easily accessible for all households, including those who are digitally excluded, use prepayment meters, or alternative fuels,” it adds.

“Navigating complex policy frameworks and eligibility criteria is difficult for the average consumer, let alone those who have lower resilience to cope.

“A holistic approach is recommended, including joined up thinking across government departments, to develop a concise set of policies to help those most in need with bill affordability is crucial.”

The committee’s research notes that households in fuel poverty became increasingly desperate over the winter of 2022/23.

Consequently, the report adds that “households in fuel poverty were using more unconventional – and more dangerous – heating and lighting methods to avoid using energy during the winter”.

It adds: “Desperation can lead to dangerous behaviour. One workshop participant mentioned that they increasingly saw people trying to bypass their gas meter. Such bypassing makes the meter reading lower than actual gas usage. It is, however, also dangerous to do so as it can lead to gas leakage in the home.”

Other examples of dangerous heating and lighting methods listed in the committee’s report include the use of cannisters of gas (hoping to head off increases in gas prices), using space heaters, electric blankets and hot water bottles, and used fire – such as tea lights and burning furniture in fireplaces – as sources of heat and light.

The report concludes: “Whilst recognising the unprecedented nature of energy bill support in the winter of 2022/23, the study finds that further long-term support on energy bill affordability and energy efficiency would be needed (and for the latter, accelerated) in order to meet government fuel poverty targets in 2025 and 2030.”

In particular, the report suggests that the government explores: considerations for a social tariff, data sharing to help identify fuel poor households and enable policies to be targeted more effectively, and a clearer national strategy for improving the energy efficiency of homes.

With utilities bills set to remain unaffordable for millions next winter, Utility Week has recently launched its Action on Bills campaign which calls on government to urgently engage on targeted support and commit fresh funding to help customers navigate a cost of living crisis which is far from over.