One third of old-style PPM discount vouchers still unredeemed

One third of government energy bills discount vouchers issued to traditional prepayment meter (PPM) customers during the first two months of the  scheme’s operation have still not been redeemed, new government figure show.

Data on Energy Bills Support Scheme (EBSS) payments made by suppliers to customers, published by the Department for Business, Energy and Industrial Strategy (BEIS), shows that 4.04 million vouchers were issued in October and November.

Households on PPMs, like other customers, are receiving £400 worth of support through the EBSS over the winter.

PPM customers are sent £66 vouchers each month, which can then be redeemed at Post Offices or PayPoint locations, by post, email or text.

However just 2.66m of these vouchers had been redeemed by the end of last month, according to the statistics. This figure equates to 34% of the total number of vouchers issued.

November’s government EBSS figures showed that one third of traditional PPM vouchers, issued during the scheme’s first month, had yet to be redeemed.

The figures have sparked a joint letter to energy supplier CEOs by consumer bodies and charities Age UK, Citizens Advice, Money Saving Expert, National Energy Action and Which?.

They write: “While we appreciate that this may be due to a variety of factors, it is essential that these reasons are identified, so that both systematic and specific issues can be addressed, and customers can easily and conveniently access this support, particularly ahead of the festive period when many will be relying on this support to help make ends meet.

“It cannot be right that millions of pounds of government support is going unclaimed while low income and vulnerable groups are at risk.”

The letter urges suppliers to publish on a monthly basis the voucher redemption rates for traditional PPM customers by delivery method.

This will develop an understanding of the delivery methods which are most effective at reaching customers.

The letter also calls for an urgent investigation into why redemption rates have been low so far amongst traditional PPM customers.

Any specific issues should be addressed swiftly and delivery approaches adapted to the “most effective” method that the data reveals.

It also urges suppliers to “step up” efforts to raise customer awareness about the EBSS including by letting customers know how their vouchers are being delivered and what they need to do to redeem them.

The letter has been copied to BEIS secretary of state Grant Shapps, who wrote to supplier CEOs earlier this month that he was “deeply” concerned about reports that many PPM customers have not received EBSS vouchers.

Responding to the letter, Energy UK’s deputy chief executive Dhara Vyas said: “Suppliers are doing everything possible to ensure that the vouchers are reaching customers and will make repeated attempts using the channels – such as text, email, phone or post – and contact details available to them. The energy industry has also been looking to raise awareness of the scheme and encouraging customers to redeem the vouchers once they have received them, by working with outlets like the Post Office and Paypoint as well as consumer groups like Citizens Advice (more information here).

“Customers with traditional prepayment meters are advised to ensure their contact details are up to date and to check regularly for any communication from their supplier. Anyone worried about missing their vouchers or struggling to pay their bills should get in touch with their energy supplier. With more customers seeking more help than ever before, call centres are inevitably very busy so we’d urge callers to keep trying and use different communication methods if they are able to. Customers with smart prepayment meters should be aware that they are receiving the support automatically without any need for vouchers.”