National Energy Action (NEA) has been involved in policy work to maintain and reform the Default Tariff price cap for several years. This has included working with Ofgem to initially create the Safeguard Tariff cap for prepayment and other vulnerable customers. Subsequently, NEA helped to design the Default Tariff price cap to ensure it offers as much protection for low-income and vulnerable customers as possible.

National Energy Action welcomes the opportunity to input into this process and calls on Ofgem to consider solutions it has the power to create, in addition to working with the UK Government to create enduring solutions to debt and affordability challenges.

Ofgem has opened a Call for Input on the subject, which will close on 13 May 2024. This briefing highlights National Energy Action’s emerging views on what Ofgem and government can do to tackle affordability and still-rising debt levels.

National Energy Action has consistently advocated for payment premiums to be eliminated in the energy market. Historically, our focus has been on the premium faced by prepayment users, which before the pandemic, was the larger differential.

National Energy Action has consistently advocated for payment premiums to be eliminated in the energy market. Historically, our focus has been on the premium faced by prepayment users, which before the pandemic, was the larger differential.

NEA is pleased that the government and Ofgem are consulting on the establishment of consumer protection requirements for heat network consumers. We recognise the importance and potential for growth of heat networks in providing local, low carbon heat sources for households.

NEA is concerned about the record levels of debt and arrears in the market, recently reaching £2.6bn. This figure demonstrates that an increasing number of households are struggling to afford their ongoing costs of energy and are falling behind. With the majority of the £2.6bn figure coming from arrears, there is a clear need for energy suppliers to ensure that affordable repayment arrangements are being created.

Our Budget and CSR submissions recommend ways to support struggling households to keep warm this winter at a time when energy prices are increasing, incomes are reducing, and there are other financial pressures on households like rising inflation. It also recommends longer term actions to end fuel poverty through increased spending on energy efficiency and making the uplift to Universal Credit permanent.