Outgoing Eon boss calls for EBSS to be revived

Outgoing Eon chief executive Michael Lewis has called for the Energy Bills Support Scheme (EBSS) to be revived for the coming winter.

Speaking to Utility Week during his last two weeks in the job, Lewis warned that “we’re not out of the woods” and urged government to take action sooner rather than later.

Lewis also backed Utility Week’s Action on Bills campaign which, among other things, is calling for more targeted support measures to be introduced next year.

Lewis – who will become chief executive of German energy company Uniper on 1 June – said he does believe the EBSS will make a return this winter.

“The problem is we know now that looking forward bills are going to be around £2,000 to £2,500. We don’t know the exact number, the market is still quite volatile. But we’re heading into this winter with, again, some very big risks,” Lewis said.

“It’s not a given that prices will stay at the current level, it’s not a given that there won’t be further disruption to the energy system and there are numerous ways in which that disruption can manifest itself.

“It might be just an extremely cold winter, that in itself could cause us a problem. It might be that we have disruption to LNG supply or big increased upticks in post-Covid China LNG supply, it might be that we have problems with French nuclear plants.

“You stack these problems or risks upon one another and there is a significant risk that prices will go up again in the winter. So we’re not out of the woods and therefore I do think we need to start thinking now about more targeted support assuming the prices stay broadly where they are, and potentially a scheme if prices spike again.”

Lewis has been a vocal proponent of support for vulnerable customers and following the Budget announced in March this year, the Eon chief said he agreed with proposals for a social tariff based around the principle of a rebate. This, he said, should be developed and be in place for next spring.

The EBSS was first announced by then chancellor Rishi Sunak in February last year. It was subsequently doubled from the originally proposed £200 rebate to £400.

In July 2022 the former Department for Business, Energy and Industrial Strategy (BEIS) said the £11.7 billion scheme was to be administered by suppliers, with the money being paid to consumers over a six-month period beginning in October of that year.

Households received a £66 discount in October and November, rising to £67 each month from December through to March 2023.

Payments were made automatically to direct debit customers and smart prepayment meter (PPM) customers had their payments credited directly to their meter. Those on non-smart PPMs were sent vouchers or Special Action Messages in the first week of each month, issued via SMS text, email or post.

In April it was revealed that more than £160 million in energy support vouchers remained unclaimed, with little over two months to go before the scheme was due to end.

This was the equivalent of 2.5 million vouchers issued to customers with old-style PPMs that were yet to be cashed.

As such, the Department for Energy Security and Net Zero and the Fuel Bank Foundation launched separate awareness campaigns in a last-ditched attempt to make people aware of the support available.

Utility Week discussed a wide range of issues with the outgoing Eon boss including the smart meter rollout, the impact of the pandemic and his thoughts on the future of the energy market as he prepares to leave for his new role at Uniper. The full interview will be published later this month (May 2023).