Domestic Energy Bills: Help At Hand

As the Government warns there will be no handouts for those struggling to cope with soaring fuel bills, National Energy Action offers tips on where to turn for help.

Is there any help available?

Yes. The key is knowing where to look and to phone around.

What is the first step?

The best thing to do is to phone the free Home Heat Helpline on 0800 33 66 99.

They have experts who can give you advice on grants and how to save money on your heating bills by making your home more energy efficient.

If you are worried about a relative or friend, perhaps someone who is elderly or vulnerable, it’s not a problem – you can call for yourself or on behalf of someone else you are concerned about. This line is open 9am–8pm Monday to Friday and 9am–3pm on Saturdays.

The Citizens Advice Bureau is very good for people who are worried about debt problems.

You should also contact your local council and see what help they can offer. Many local authorities offer grants for insulation and energy efficiency measures.

Does Nea recommend that customers contact their supplier to let them know their concerns?

Yes this is one of the first things you should do. A lot of people who are struggling to pay their bills are not paying the cheapest price for their energy.

This is because they don’t have access to the internet or bank accounts so can’t access the cheaper online or direct debit deals. Suppliers may be able to put you onto a more favourable tariff or give you a cash rebate.

They also offer discounted or free cavity wall and loft insulation and other energy efficiency measures to their customers which could help to reduce your bills by 30%.

All suppliers in theory offer some sort of social assistance to customers. Unfortunately the eligibility criteria vary so it’s not always easy to see what’s available. The best thing is to phone them up and see what they're offering.

Are there any Government-assisted programmes that can help?

Warm front is a great scheme for people on benefit.

It gives you a benefit check to see if you can increase your income. And, if you are eligible, it will give you grants for insulation and heating systems.

What about options for long-term energy-saving plans?

Energy saving Trust(0800 512 012) is geared more towards the able-to-pay customer who wants to invest in order to save.

Is it possible to compare deals offered by different suppliers?

You can look at websites like Energywatch and Uswitch. You type in your details and they will give a basic price comparison.

Is it easy for anyone to switch companies?

Every day about 1000 people are pushed onto prepayment meters because of debt and are then effectively barred from switching suppliers.

The problem is that the prices on a prepayment meter are a lot higher - on average £203 a year higher than the cheapest available deal.

So ironically we have a situation where the people who are least able to pay are the ones paying the most for their energy.

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It pays to stay online as web-only tariffs prove the cheapest option ... but for how long?

Customers who pay quarterly could save money by switching to a little-known and relatively small energy supplier, Ebico - Britain's only not-for-profit power company. Ebico is currently appearing as the second-cheapest provider, with the average household paying £962 a year in bills, and could suit consumers who don't want to stay with giant utilities firms.

Ebico uses Scottish and Southern as its supplier but works on the premise that every customer pays the same rate, regardless of whether they pay by direct debit, prepayment or quarterly.

'Other companies give direct-debit customers discounts, but we try to give everyone discounts,' says Phil Levermore, managing director of Ebico. 'Even if energy prices are rising, we will still treat customers in a fair way.'

Since other providers have pushed their prices up, Ebico has shot up the best-buy tables, according to Todd - but that too might not be for long.

'Scottish and Southern Energy is expected to be one of the last companies to raise prices, and while Ebico is a good company, they too will be raising prices later this year,' he says.

Levermore adds: 'With retail prices heading upwards, it's quite likely our prices will be rising too. That said, we're the only not-for-profit energy company and we believe in offering the fairest deal in the market.'

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Social housing body calls for end to 'unfair' fuel prepayment meters

Low-income families struggling to pay soaring fuel bills will stay in the spotlight this week as charities and industry bodies demand that the government stop energy companies from charging some of their poorest customers high premiums.

Following the double-digit energy price rises at Eon and Scottish and Southern (S&S), the National Housing Federation - which represents 1,300 non-profit housing associations - will launch its Energy Action Week tomorrow. It wants housing associations to pressure their MPs to take action against higher tariffs for electricity and gas prepayment meters.

Customers using these meters typically pay £150 more a year than those paying by direct debit, and around £60 more than those who pay quarterly by cash or cheque, its research shows. Prepayment-meter customers use a key, card or tokens, which can be topped up in local shops, as opposed to 'standard' customers who pay by cash or cheque on receipt of their bill. Monthly direct debit customers pay their bill in equal installments over 12 months.

These tariffs are unfair and penalise impoverished families, claims the federation, which has conducted research showing that the average income of prepayment customers is £16,000.

'A quarter of prepayment customers are "fuel poor", which means they spend over 10 per cent of their household income on gas and electricity, and this burden is only increased by the high tariffs forced on them by prepayment meters,' says John Pierce at the NHF. 'We are not opposed to prepayment meters as housing association tenants can sometimes struggle to pay large quarterly bills and the meters give them the chance to budget carefully. But it is unfair that they are overcharged when they are already struggling with a low income.'

Economy tips

· Try to switch from prepayment to cheaper standard or monthly direct-debit payments.

· If you can, change suppliers to find a cheaper tariff that suits your energy consumption.

· If you're in debt to your current supplier, you might still be able to switch if it does not exceed £100. You will then owe the money to the new supplier.

· You may be eligible for benefits and grants such as the Warm Front Programme, which can help you pay for fuel. See energywatch.org.uk.

· Most companies now offer a social tariff if you receive certain benefits. Your supplier will be able to give you more information.

· If you are struggling to pay off a debt to an energy company, contact Citizens Advice for help.

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Smart Way To Slash Energy Bills

A new energy company launches on Monday with the promise to revolutionise the industry and help you with your gas and electric bills.

First Utility is to install smart meters - the next generation of electricity and gas meters that read energy usage every 30 minutes.

It hopes to compete with the Big Six energy companies by letting homeowners see where they are spending their cash.

Mark Daeche, the co-founder of First Utility, told Sky News Online: "Trials have show that you can save up to 15% on your electric bill.

"We are from a background of telecoms. We are bringing the strengths of the telecoms industry to energy. We are bringing smart billing, we are accurate and on time. These are things that the big six just don't do."

He accused the Big Six of operating a cartel - something they deny.

"There is no transparency. They are vertically integrated which means the generator is selling to the supplier. It needs to be broken," he added.

"We need to have a liquid wholesale market where we can go and purchase then it's clear to everyone what the prices are."

So how does the smart meter work?

It is a box fitted to a wall in your home, telling consumers and suppliers how much energy is being used at any given moment.

The information can be sent to our televisions, mobile phones or PCs. It could eventually be broken down by appliance - so letting you see, for example, how much electricity your kettle is using.

First Utility promises a three way tariff with a cheaper rate.

"We will be offering 9p/kilowat compared to the 14p/kilowat that some other firms charge," added Mr Daeche.

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