Slide 1

Report
Fuel Poverty – the
EDF Energy approach
Valentine Mulholland
28th October 2008
EDF Energy
• Part of the EDF Group
• One of the UK’s largest energy companies including:
Electricity generation.
Electricity distribution to over 20 million people.
Electricity and gas supply to over 5 million customers, both
domestic and industrial and commercial
• Around 1.3 Million gas and electricity customer accounts in London.
• A strong commitment to both corporate social responsibility and
tackling climate change:
June 2007 – EDF Energy Climate Commitments
Early 2008 – EDF Energy Social Commitments
London Energy Partnership 281008
2
Energy Assist social tariff
• Industry first since April 2006 and offers customers on prepayment,
standard credit or direct debit prices a 15% discount.
• ‘Our Social Commitments’ committed:
To extend Energy Assist until March 2009.
To offering a social tariff until at least 2012 – another industry first.
• Currently have over 110,000 customer accounts on the tariff.
• Also offer the customer a free benefit entitlement check and energy
efficiency advice.
• Eligibility - existing EDF Energy customer and:
In receipt of income support or
Pension credit or
Evidence that in fuel poverty.
• 4 suppliers have followed our example.
London Energy Partnership 281008
3
EDF Energy Trust
•
•
•
•
•
Established by EDF Energy in October 2003 to provide advice and
direct support for customers struggling to pay energy and other bills.
First energy trust in the UK
Outside EDF Energy and managed by an independent Board of
Trustees – 100% funded by EDF Energy donations
Have donated over £8.5 Million, and Trust has made 10,000
individual awards
Awards to :
Individuals with energy or other household debt
Organisations who offer education, support and advice on debt and
household budgeting
•
•
Sustainable - over 70% of people who receive an award are still
debt free after 1 year.
4 other suppliers have followed our example.
London Energy Partnership 281008
4
Supporting prepayment customers
• Whilst most prepayment customers
are not fuel poor, they are most
likely to be on low incomes.
• Suppliers charge those customers
who choose this method of
payment more to cover the
additional costs of managing this
payment method
• But in 2005, EDF Energy was the
first supplier to align the cost of our
electricity prepayment tariff to our
standard tariff
• Even in gas, we keep the price
difference as low as possible
London Energy Partnership 281008
5
Differential
to price paid
by cash/
cheque.
customers
EDF Energy
average
differential
Ofgem
assessment of
reasonable
additional
costs incurred
by suppliers to
offer
prepayment
Differentials
to price paid
by direct
debit
customers
£34.90
£76.87
£65
£85
Other voluntary initiatives to support fuel
poor customers
• London Warm Zone
Partnership with 18 Local Authorities extending across London
EDF Energy provides:
» Core funding C£250,000 a year.
» Seconded Project Manager
» CERT funding to deliver insulation element
• Safe, Warm and Well campaign
• Partnership with WRVS
• Partnership with other voluntary organisations including:
» Citizen’s Advice Bureau
» National Energy Action – sponsoring and joint work
London Energy Partnership 281008
6
Ofgem’s ‘review of suppliers’ initiatives - August 2007
London Energy Partnership 281008
7
The supplier ‘voluntary commitment’
• EDF Energy position – we would support a mandatory social tariff.
• Government reluctant to legislate.
• Discussion with Treasury and BERR have led to a voluntary social
commitment agreed April 2008.
2008/09
2009/10
2010/11
£100 Million
£125 Million
£150 Million
£11 Million EDF E
£13Million
£16 Million
• Ofgem framework for eligible spend and monitoring:
 Social tariffs and rebates
 Warm Zones
 Partnerships
 Trust Funds
 Energy efficiency over and above CERT
London Energy Partnership 281008
8
www.edfenergy.com/toolkit/index/html
London Energy Partnership 281008
9

similar documents