Energy firms hold on to aid for customers

Britain’s largest energy companies sit on a treasure trove of £280 million in taxpayers’ money that should have been passed on to customers through vital subsidies, The Mail on Sunday reveals.

British Gas, Scottish Power and Eon are among the companies that have earmarked the largest amounts for the government’s Energy Bills Support Scheme. Together, these companies have withheld an estimated £155 million.

The scheme to help with the cost of living crisis ran from October to March. Millions of households received £400 off their gas and electricity bills through monthly installments to alleviate skyrocketing energy costs.

But shocking government figures, analyzed by the End Fuel Poverty Coalition, show that hundreds of thousands of households had still not received financial aid at the beginning of March when the figures were compiled. This includes large numbers on traditional prepayment meters, which are often the most vulnerable – struggling at the lower end of the income scale.

Obviously, many prepayment vouchers may have been delivered to customers but still not redeemed. But others have not received them at all.

Government data from October to February show that some suppliers have outperformed others in disbursing money from the support scheme.

Industry sources said certain companies had taken actions to remind customers who had received but not redeemed their prepayment vouchers to do so.

Official figures show that Octopus Energy has spent almost 90 per cent of its support vouchers and now has just over £1 million in cash from the energy relief scheme.

In contrast, Scottish Power has not yet handed over £45.4 million in aid.

Energy suppliers have said the government’s figures are out of date as new figures come out this month. Some have also highlighted that most support vouchers have been delivered to customers but not redeemed.

Affected customers are not only households with prepayment meters, but also customers with direct debit or so-called ‘default credit’ customers who pay for their energy in cash or by check.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said the investigation paints a ‘shocking picture’.

He added: “In some cases, energy companies have been far too slow to pass on these vital funds to customers who may have spent the winter in cold, damp homes. While many millions of households have received their payments without any problems, the figures regarding the redemption of meter vouchers are particularly worrying. Energy companies need to step up their game to end this customer service disruption.”

There are many reasons why customers have not received support, mainly because different vendors used different methods to pay the £400. Some discounted it directly from customers’ accounts, while others credited cash to people’s bank accounts.

In theory, this meant that payments could be bounced back or “technical gremlins” could intervene. But regardless of the method, activists are calling for urgent action.

Rocio Concha, Which one? Director of Policy and Advocacy, said: ‘It is deeply concerning that we are still seeing vouchers for the Energy Bill Support Scheme not redeemed and millions of pounds of government aid going unclaimed.’

It is essential that the government, energy suppliers and top-up points do everything they can in the final months of the scheme to raise awareness of the scheme and do everything possible to reach customers who are still struggling to redeem their vouchers. or are not aware of it. of the scheme.’

It is clear that energy companies will have to repay all outstanding cash to the government, including interest received. This raises the question of what the ministers will do with the windfall, should it come this summer.

All major energy companies have been approached for comment.

Eon urged customers to redeem all vouchers valid until the end of June 2023, adding that it has made more than 24 million payments in the past six months.

A spokesperson added, “As a portion of the customer accounts, we are well within the industry’s performance levels in providing this support in a timely manner and continuing to deliver this assistance to customers in an efficient manner.”

Scottish Power said: ‘Our priority is that our customers receive the support they are entitled to. But many factors can lead to a voucher not being redeemed, such as outdated email addresses or customers not communicating with their energy company.’

British Gas said: ‘Our teams have worked hard to deliver this government plan to millions of customers.

All payments have been made. If for any reason a customer has not received any of these payments, our advice is to contact us and we will resolve it as soon as possible.”