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Urgent action from the government, Ofgem and energy suppliers is needed to help households facing a “inevitable” new winter crisis, a parliamentary select committee has said.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
It comes off the back of a new report from the Energy Security and Net Zero Committee following an inquiry on how the government and energy firms can prepare for the coming months. As part of this, MPs heard of the coping measures and sacrifices some had to make to heat their homes last years, as well as how excess winter deaths increased by nearly 50% to more than 4,700.
As such, and while recognising the levels of support provided last year, the committee is concerned no new specific financial assistance has yet been announced – and warns the challenges of coping with continuing high energy costs will be exacerbated by wider cost of living pressures and accumulated energy debt.
The committee is therefore calling for a package of targeted support for vulnerable groups by the government, while energy companies need to take a more proactive and empathetic approach to customer service. The report also calls for a revised Cold Weather Payment to be provided ahead of forecast cold events, and for the government to ensure local authorities share best practice in how to deliver the Household Support Fund.
Ofgem and energy companies, meanwhile, need to adopt a “more proactive culture” in improving industry consumer standards, and suppliers should be required to provide a priority phoneline for charities and consumer organisations to access support their clients.
The committee’s chair Angus Brendan MacNeil said: “The nights are now drawing in and many of our most vulnerable people will be haunted by harrowing memories of the relentless sacrifices they were forced into last year, just to keep their heads above water in the face of exorbitant energy costs. In fact one in four carry energy debts from last winter.
“With the challenge this winter threatening to be even worse, an announcement of support from the government is long overdue. The mechanisms to provide assistance are already in place – the government and energy firms must now get on and act to reassure struggling households that they are not being left to fend for themselves.
“While financial support will be vital, there also needs to be a drastic improvement in customer service and the empathy shown by energy companies to those who are going through tough times. If these firms don’t improve, Ofgem must be less backwards in coming forward and give them a good shake to ensure they are working in the best interests of their customers this winter.”
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