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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