Energy suppliers will now have to step up their support for consumers under the Energy Company Obligation scheme which requires larger energy suppliers to install insulation, heating or energy efficient measures into low income or vulnerable households.
The ECO will be extended until 2026 with its funding boosted from the current £640 million to £1 billion a year.
Under ECO3 low income households have reportedly saved up to £300 and the planned ECO4 is expected to provide even more financial support and assist customers to save more.
Energy suppliers need to keep their records up to date as well as ensure the correct customers are added to the relevant schemes. To do this the most vulnerable customers should be added to the Priority Services Register.
According to government statistics there are currently 1.2 million low income households living in the low energy efficient homes. The newly announced Minimum Energy Efficiency Standards are also predicted to save private renters up to £220 on their energy bills.
Also read: Add your Customers to the Priority Service Register with Dyball’s CRM
The PSR is a free service provided by energy suppliers and network operators to customers in vulnerable situations. A customer can sign up to the register if they are:
Customers on the PSR are eligible for several free services such as receiving advance notice of any planned power cuts, priority support in the event of an emergency and an identification scheme to reassure customers that callers and meter readers from their suppliers are genuine.
Also read: Add your Customers to the Priority Service Register with Dyball’s CRM
Many consumers are struggling due to the lockdowns introduced because of the Covid-19 pandemic. Several support schemes have been announced over the course of the crisis with organisations such as Energy UK launching the Vulnerability commitment.
“This strategy sets out our plan to ensure everyone can afford the energy required to keep their lights and heating on, especially during the winter. Coronavirus has resulted in many consumers seeing reduced income and therefore an increased number of households may now be struggling with their energy bills, especially as it gets colder.
“This strategy reflects our commitment to helping the most vulnerable, and how action already taken is helping to make a real difference to fuel poverty. We already have schemes to increase the energy efficiency of homes, reducing the cost of bills whilst also contributing to net zero targets. The expanded Energy Company Obligation is one example of such a programme, resulting in warmer and greener homes for those most vulnerable. We are also protecting tenants against cold homes and high energy bill costs through increased energy efficiency standards,” said Business and Energy Secretary Kwasi Kwarteng.
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