Watchdog' s energy debt warning

Energy suppliers say they do more to help customers than any other industry

Some of the most vulnerable people in Wales are at risk of debt because energy firms are failing to help them enough, a consumer body has warned.

Consumer Focus Wales said it had recorded 67 new cases of vulnerable people seeking help with their energy bills since October.

The watchdog said the firms' pricing, tariffs and debt recovery methods were contributing to people's debt problems.

Energy suppliers promised to do more work to help vulnerable customers.

Consumer Focus Wales, newly created by a merger of Energywatch Wales, Postwatch Wales and the Welsh Consumer Council, said it had "worrying" examples of the way energy companies were treating people on low incomes.

It said cases included:

• Parents with young children having their gas cut off.
• Someone on benefits having debt recovery rates set "unrealistically high".
• A customer unable to open an account because of a disagreement between a new and previous supplier about meter readings.

'Double trouble'

Launching the report at the Welsh assembly, the organisation's chair, Viv Sugar, asked suppliers to use debt recovery schemes better-suited to customers so they were not left struggling.

She also called for fairer pricing and tariff structures with mandatory minimum standards for social tariffs because the "voluntary approach" was not working.

"The voluntary nature means that eligibility criteria differ considerably and suppliers can withdraw products without notice, Ms Sugar said.

"Given these tariffs are aimed at the most vulnerable this is a situation that has to be addressed quickly and in a uniform way."

The report, Double Trouble: Debt and Disconnection in Wales, observes that "many people" were not getting the "full benefits of competition" introduced when the energy market was de-regulated nearly a decade ago.

Ms Sugar said: "We in Wales are more reluctant to switch to a new supplier, with many people remaining loyal to their original supplier prior to de-regulation.

"This means they could be paying more for their energy than customers of other utility companies also operating in their area."

One reason the report suggests people in Wales might be shopping around less for energy was that many did not have internet access, making it more difficult to compare prices and get cheaper on-line deals.

Ms Sugar added that the one in five people in Wales who were off the gas grid could not benefit from dual-fuel discounts and often relied on more expensive heating methods, such as domestic oil.

And she said the above-average numbers of prepayment meters in Wales was also a reason why people on low incomes were struggling with bills.

'Right solutions'

The Energy Retail Association, representing the UK's six largest suppliers, stressed its members "take their obligations to assist their most vulnerable customers extremely seriously".

Spokesman Peter Jenkins said: "Energy suppliers do more to help their customers than any other industry.

"Consequently we will work with Consumer Focus Wales to ensure that the right solutions are in place for these customers.

Mr Jenkins urged anyone worried about paying their energy bills or keeping warm to contact their energy company "as soon as possible to find out what assistance may be available to them".

People were also encouraged to call the free Home Heat Helpline on 0800 33 66 99.