New

Markets -

New

Opportunities?

5/2/2020

Energy Best Deal Scotland Andrew Faulk Consumer Focus Scotland

2

Overview

• What’s happening with energy prices and fuel poverty • How you can help your clients reduce costs – Switching tariff or supplier – Energy efficiency actions – Energy Assistance Package • Support for advisers on energy issues 5/2/2020 3

ScottishPower profits rise 8% sparking customers' anger

25 February 2010 By Martin Flanagan A RISE in ScottishPower's full year profits to £1.3 billion was yesterday branded indefensible as people struggled to afford to heat their homes despite falling wholesale prices

ScottishPower says price hikes needed to fuel £15bn investment

16 June 2011 By Nathalie Thomas ENERGY giant ScottishPower has mounted another defence of its steep price rises, saying it will have to spend £15 billion over the next nine years to help the UK government meet its "ambitious" 5/2/2020

Energy prices, past and future

Ofgem’s Project Discovery shows price trends over time 5/2/2020 5

Households in Fuel Poverty in Scotland 5/2/2020 6

How can you help your clients reduce costs?

• Find and change to the best tariff for their household • Adopt energy efficient behaviours • Install longer term energy efficiency measures

We’re going to look at each of these options...

5/2/2020 7

Switching can seem complex...

• What’s the best approach?

• Can everyone switch?

• Do you have to change suppliers?

• Payment methods? fixed contracts?

• Warm Home Discount?

• Customer service and related benefits?

....but for most people, it is easy and works well

5/2/2020 8

Case Studies

• Pensioner couple, never switched, Borders, standard tariffs. Moved to on-line dual fuel £2,400 reduced to £1,800 • Single adult, Edinburgh, electricity only, switched ‘a few years ago’ - £350 reduced to £320 • North Edinburgh Trust, 3 out of 5 families saved over £100 • Advisers attending training sessions – typically £100 - £200 5/2/2020 9

Can everyone switch? What if you don’t want to change supplier?

Most people can switch – but: • Some electric heating systems aren’t covered by other suppliers - Scottish Hydro

Total Heat, Total Control,

ScottishPower

Comfort Plus

• Some landlords prevent tenants from switching • Many people are happy with their current supplier – still possible to save by changing tariff or payment method 5/2/2020 10

Warm Home Discount: Replaced Social Tariffs from April 2011 • Social tariffs varied between companies. Targeted at fuel poor, but up to individual consumers to apply • WHD - uses ‘data matching’ to deliver an annual discount on electricity bills (£120 - £140) to a Core Group of households: initially, guarantee element of Pension Credit.

• Later years will see it extended to those in receipt of guarantee and savings elements of Pension Credit. • Broader Group – households eligible for Cold Weather Payments or other criteria set by Ofgem. 5/2/2020 11

Supplier Performance

Rating Supplier

SSE (Scottish Hydro) British Gas E.On

EDF ScottishPower NPower 5/2/2020 12

Consumer Focus Confidence Code The

Confidence Code

shows websites which meet our standards of service: http://www.consumerfocus.org.uk/energy-help-and-advice/confidence-code 5/2/2020 13

Energy Efficiency Actions

• Using heating systems effectively – check timing settings and thermostats • Using washing machine when full and on lower temperatures • Boiling only as much water as needed in the kettle • Drying clothes outside where possible • Closing curtains to reduce drafts • Installing low energy light bulbs • Turning appliances off when not in use 5/2/2020 14

Scottish Government Energy Efficiency Programmes • Energy Assistance Package: 1. Energy Efficiency Advice open to everyone 2.

Benefits check, referral for suppliers’ social tariff 3. Standard insulation measures – loft & cavity wall 4. Heating systems • Universal Home Insulation Scheme: door-to-door energy efficiency advice + free measures • Further services via local authorities or housing assns 5/2/2020 15

Finding Out More

0800 512 012 www.energysavingtrust.org.uk/

5/2/2020 16

Consumer Focus Support for advisers

•

Ask the Adviser

service provides office hours help to frontline agency staff

0844 980 0041

• On line

Knowledge Base

: advice leaflets, FAQ section, online access to expert advice • Select partners login option at ww.consumerfocus.org.uk

Username

Advice_agency08

Password

mUF2uS2e

5/2/2020 17

5/2/2020

Consumer Focus Extra Help Unit

• • • • • Team of 21, GB wide coverage & post NI.

Support and advice for 8,000 vulnerable consumers each year Case work and negotiation with suppliers to resolve complaints and disconnections.

Can refer trends and issues to the regulator £1.4m compensation & refunds for consumers in 1 st two years 18

When things go wrong...

5/2/2020 19

To take this further...

• On-line version of training available shortly • Further ½ day training sessions in the autumn - register via MAS • CFS staff will deliver bespoke training if you organise a session • What else might we do?

5/2/2020 20

5/2/2020 21

5/2/2020

Questions?

22