British Gas, OVO and Octopus Energy to hand out £120m for customers' energy bills
by Katie Elliott · ChronicleLiveCustomers of British Gas, OVO, and Octopus Energy who are facing financial struggles are set to benefit from increased support this winter as they cope with rising energy bills.
Following discussions with the Government, these energy providers have committed a combined £120million towards a wider £500million initiative pledged by energy suppliers to help households amid climbing energy costs. Portions of this fund are also earmarked for charities that support consumers who are difficult to reach. .
To alleviate costs, companies will provide loans to individuals, lower standing charges—constituting parts of all energy bills—and contribute to funding a nationwide debt advice initiative. Amidst efforts to mitigate the effects of reduced winter fuel payments for about 10 million senior citizens—a move officials worry could thrust 100,000 pensioners into relative poverty within this decade—the price cap imposed by Ofgem is slated for an additional increase of 1.2% this winter after October’s 10% surge in wholesale prices.
Miatta Fahnbulleh, Minister for Energy Consumers, commented: "The impact of the energy crisis is still being felt by people across the country, and the Government and energy suppliers are working in lockstep to help vulnerable households this winter."
She detailed that the aid offered by the companies along with the Government's warm homes scheme—which aims to fund home improvements for enhanced energy efficiency—will amount to roughly £1billion in support, reports the Express.
Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter
Fahnbulleh will also helm a task force alongside industry figures in a concerted endeavour to make energy more affordable over the long term. .
A number of energy suppliers are advocating for the introduction of a social tariff, similar to the one used in the telecoms industry to help benefit recipients, such as those on Universal Credit, pay their broadband bills. This measure, which has been backed by campaign groups for several years, would provide a discounted rate for low-income households, lower than standard tariffs.
Dhara Vyas, the head of the trade body Energy UK, highlighted the record high levels of consumer debt, which stood at £3.7 billion in June. She noted that many people have yet to recover from a prolonged period of high energy bills and a corresponding increase in the cost of living.
Ms Vyas stated: "As in previous winters, energy suppliers have already been stepping up the amount and range of support they offer to customers. There is, however, only so much they can do when a large number of households are struggling to afford energy at the price it costs to supply it."
"We've very much welcomed the Government's constructive approach in our discussions so far and the recognition this is not a temporary problem.
"The establishment of a working group and the commitment to look at how data sharing can help target support are important steps towards putting in place an enduring plan for future winters."
Those struggling with their energy bills can visit their supplier's website to find out what support is available. British Gas is extending a helping hand with up to £2,000 worth of support, while Octopus Energy customers can tap into its generous £30million Octo Assist Fund. Customers can also get free electric blankets, winter fuel payments, and standing charge waivers.
Join our WhatsApp communities
ChronicleLive is now on WhatsApp and we want you to join our communities.
We have a number of communities to join, so you can choose which one you want to be part of and we'll send you the latest news direct to your phone. You could even join them all!
To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.
No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners.
If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our privacy notice.
Join the ChronicleLive Breaking News and Top Stories community
Join our Court & Crime community
Join the Things to do in Newcastle and the North East community
Join our Northumberland community
Join our County Durham community
Join our Great North Run community