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Citizen’s advice has created a good practise guide. Citizen’s advice will publish a full policy report on self-disconnection early in 2018. For further information read guide on link:
Self-connection amongst young people who use a prepayment meter has gained prominence over the last couple of years and energy suppliers are trying to put more support measures in place.
Self-disconnection tends to be linked to income insecurity, welfare reform, poor energy efficiency and consumer debt.
- Crisis support
Consumers who self-disconnect may get:
- a discretionary top up from their energy supplier
- fuel vouchers from charitable schemes
- help from local welfare schemes
- hardship payments from the job centre
If the customer is in debt with their energy supplier and struggling to keep up with payments, they may be able to get a grant from an energy trust fund.
CLIENT STORIES
Catherine had a gas prepayment meter installed when she fell into debt with her supplier. She found it difficult to keep the meter topped up because the debt repayments were so high. She didn’t want to cut back on heating too much because she has asthma and it gets worse in the cold.
She phoned her supplier several times to ask how much she owed and to query the debt repayments. Eventually, after they had replaced a faulty meter, they said she no longer owed anything and they would reimburse her £400. A year later, she found that her prepayment meter was taking debt repayments again. Her supplier confirmed that there had been a mistake but she needed to repay £8 a week. She went away for three weeks and when she returned the supply had disconnected. She phoned her supplier again and they sent an engineer round to reset the meter.
Catherine then asked her local Citizens Advice for help with the debt repayments. The adviser contacted the supplier on her behalf, and as a result the supplier accepted that most of the alleged debt was unrecoverable due to the back billing protocol. For the reduced balance owed, Citizens Advice also helped negotiate an affordable repayment rate. Catherine says it would have helped to have written information from her supplier about how much she owed.
- The Warm Home Discount
What is the Warm Home Discount? The Warm Home Discount Scheme is an initiative from the government that helps low-income and vulnerable households with a discount on their electricity bills over the winter.
It’s a one-off discount of £140 administered by your energy supplier – providing your energy supplier participates in the scheme. It isn’t a cash payment, but comes as a reduction in your energy bill.
If you’re on a pre-pay meter, you can still get the discount. Your provider will tell you how you can get it, perhaps through a voucher or other facility.
The scheme will not affect your entitlement to either the Winter Fuel Payment or the Cold Weather Payment.
Who can claim the discount? Pensioners who receive the Guarantee Credit element of Pension Credit are considered the ‘Core Group’. If you belong to this group, then you should receive a letter from the Department of Work and Pensions letting you know of your eligibility for the scheme.
Pensioners do not normally need to apply for the discount, and instead will have the money automatically deducted from their bill.
But it isn’t only for pensioners, if you are on a low income, for example, then you may also be eligible for the discount scheme. Householders in receipt of income support, income-related employment and support allowance (ESA) or income-based job seeker’s allowance will often be eligible and are known as the ‘Broader Group’.
Energy suppliers can also use their discretion, so if you have a child under five living permanently in the house, or you receive the Disability Living Allowance (DLA) then you may also be eligible for the discount.
Applicants The discount is offered to the Broader Group on a first-come first-serve basis, so don’t delay if you think you qualify as you may miss out. Plus, you should bear in mind that your eligibility last year does not automatically mean that you're eligible this year.
However, you have to check if your supplier participates in the scheme and who it helps, so check with yours to see if you qualify.
Which energy suppliers offer the scheme? The ‘big six’ suppliers all provide rebates under the Warm Home Discount scheme. These include: British Gas, Scottish Power, SSE, E.on, EDF Energy and npower.
Also, an increasing number of smaller suppliers also participate in the scheme, and firms are obliged to take part once they have 250,000 customers.
A number of smaller firms have yet to offer the discount. So if you are entitled to the discount, check before you switch to a new provider to make sure it participates in the scheme.
How do I claim the Warm Home Discount? As mentioned above, you should automatically receive a letter from your energy supplier over the winter months if you’re eligible. This will tell you if, when and how to apply (in some cases, as in the case of pensioners, it is provided automatically). If you don’t receive this, and think you may be eligible, give your supplier a call.You can also call the Warm Home Discount scheme on 0845 603 9439 for more information.
When will I get the discount? You will receive a reduction in your energy bills sometime between October and March.If you have a prepayment meter you’ll typically receive the discount in the form of a voucher to top-up your meter.
Will the scheme be available in future years? The scheme was introduced in April 2011. It was set to run for four years, but has been extended until 2021.
There is other financial help available if you don’t qualify for the Warm Home Discount. You may be entitled to the Winter Fuel Payment, a tax-free payment of between £100 and £300 to help older people towards heating costs.
Also, the Cold Weather Payment is available to older people claiming certain benefits for periods of particularly low temperatures.
- Winter Fuel Payment
What is the Winter Fuel Payment? The Winter Fuel Payment is a government scheme set up to help older people meet their energy bills every year. It’s available if you’re born on or before 5 May 1953, and is worth between £100 and £300 per person every year.
Do I qualify for the payment?You will probably be eligible for winter fuel payment in 2016/17 if you were born on or before 5 May 1953.
The date for eligibility changes every year, so even if you can’t claim the payment this year, this may change in the future. If you live with en eligible person they will receive the payment for the household.
- Cold Weather Payment
What is a Cold Weather Payment? It’s a payment of £25 for each week of cold weather between 1 November and 31 March. If you’re able to claim this extra cash, you shouldn’t need to do anything to apply. It’s paid automatically into the same bank and building society as any other benefits you receive, usually within 14 working days of the cold period. The payment has no impact on any other benefits you might be receiving.
Am I eligible? If you receive certain benefits, you may be entitled to the Cold Weather Payment. These benefits include:
- Pension credit
- Income support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance (ESA)
- Universal credit
Switching supplier if in debt
If you've owed the money to your supplier for 28 days or less, you can switch supplier. The debt will be added to your final bill from your old supplier.
You've been in debt for more than 28 days
If you've owed the money to your supplier for more than 28 days, you can't switch supplier until you've paid the money back.
If your supplier tells you they're raising their prices and you decide to switch, you'll have 30 days to pay off the debt before they can stop you.
You can't be stopped from switching if it's your supplier's fault that you're in debt - for example because they've estimated your bill wrong. If you do owe them money you'll still need to pay this when you get your old supplier's final bill.
If you have a prepayment meter
There are different rules for switching supplier if you pay in advance for your gas and electricity.
You can switch supplier unless you owe more than £500 for gas or £500 for electricity.
You’ll need to ask the new supplier to agree to transfer your debt along with your supply (this is called the ‘Debt Assignment Protocol’).
If your supplier doesn’t let you switch
Your supplier might try to stop you from switching, even if you're entitled to. If this happens, you should make a complaint.
If you have a prepayment meter, you might want to write to your supplier and explain that you have the right to switch. You can use a template letter from Citizens Advice to help you.
Getting financial help
There are a number of energy companies who offer grants and schemes that are open to anyone - you don't have to be a customer.
You might also be able to get a grant from a charitable trust to help pay off your debts. Charis Grants has more information on available grants and how to apply.
If you’re disabled, elderly or you get benefits, check whether you can get other help paying your energy bills. There are grants for water companies such as the ‘Customer Assistance Fund’ with Thames Water – customers should contact their provider.
What happens if you don’t’ pay your debts off?
If you don’t come to an agreement
If you’re not able to agree a payment plan with your supplier, or you don’t stick to a plan you previously agreed to, your supplier might try to force you to have a prepayment meter installed.
In very rare cases your supplier might threaten you with disconnection.
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