Government agrees emergency measures with energy retailers

New emergency measures will include the suspension of the disconnection of credit meters from today (19 March), the government has announced.

The fresh steps have been agreed with every energy retailer to protect vulnerable customers during the coronavirus pandemic.

Utility Week revealed yesterday that advice was due to be published by the Department for Business, Energy and Industrial Strategy (BEIS) and Citizens Advice. The latter has also published a paper advising suppliers on how to deal with the vulnerable.

More than 4 million customers with prepayment meters who may not be able to add credit can now speak to their retailer about options to keep them supplied.

These could include nominating a third party for credit top ups, having a discretionary fund added to their credit, or being sent a pre-loaded top up card so that their supply is not interrupted.

More broadly, any energy customer in financial distress will also be supported by their supplier, which could include debt repayments and bills being reassessed, reduced or paused where necessary, while disconnection of credit meters will be completely suspended.

Both industry and government have agreed to prioritise those existing customers most in need, while identifying customers whose circumstances may have changed as a direct or indirect result of the virus.

Customers that are unable to top up their prepayment meter are advised to contact their supplier immediately to discuss how they can be kept on supply.

Ofgem recommends consumers leave the meter box unlocked if they need someone else to top up the meter. Smart meter customers should be able to top-up remotely, such as by phone, mobile application or online.

Several businesses had already outlined their plans on how to deal with consumers during the pandemic, as many more people are expected to be unable to work due to sickness over the coming months.

The announcement followed the first of a regular series of planned conference calls on Monday between trade associations and business secretary Alok Sharma to discuss the impact of the rapidly unfolding coronavirus crisis on the wider economy.

Energy UK and the Energy Network Association were both represented at the virtual meeting, which included other heavyweight trade bodies like Make UK.

The meetings were originally due to be held twice a week but Sharma is understood to want them to take place daily with officials.

Sharma said: “While friends and family will play a role in helping people impacted by the coronavirus, we recognise there will be many customers who will need additional support and reassurance, particularly those who are financially impacted or in vulnerable circumstances.

“The government has committed to do whatever it takes to get our nation through the impacts of this coronavirus pandemic. Today those most in need can rest assured that a secure supply of energy will continue to flow into their homes during this difficult time.”

Chief executive of Energy UK, Audrey Gallacher, said: “As providers of essential services and critical infrastructure, the energy industry has well-practised contingency plans in order to ensure the delivery of services and is working closely with the government on a daily basis to ensure there is no disruption to the generation and supply of energy to customers during these extraordinary circumstances.

“The sector is very conscious of the potential consequences for customers confined to their homes for prolonged periods and in particular those customers in vulnerable circumstances or on prepayment meters who may need additional help. Suppliers will be doing all they can to identify such customers and provide additional support wherever possible.”

Chief executive of Energy Networks Association, David Smith, said: “These are unprecedented times but the energy industry is working hard to keep gas and electricity flowing, look after our vulnerable customers and keep customers and staff safe.

“The UK’s electricity and gas network is one of the most reliable in the world and over 36,000 employees are working flat out to continue to provide a safe and reliable supply of energy during this time.”

Meanwhile the chief executive of Citizens Advice, Gillian Guy, said: “This is an uncertain time for many people. Energy suppliers need to play their part by communicating clearly and supporting their customers as much as possible.

“Keeping people on supply, making sure they have warm homes and don’t face additional financial or other stresses about their energy supply will be essential.”