District heating can contribute to fuel poverty reduction targets through its ability to provide stable and predictable prices for energy over an extended period of time; reduced worry for households about breakdowns or repairs; the creation of local employment opportunities and contribution to economic growth.

NEA appreciates that many energy suppliers and their staff will be working tirelessly to provide appropriate support and services for customers in vulnerable circumstances during the COVID-19 outbreak. NEA has also been capturing its own staff’s feedback on the early impacts COVID-19 is having on vulnerable customers’ access to support. The findings provide a snapshot of some emerging trends.

It is imperative that prepayment meter (PPM) customers continue to receive protection. The CMA stated in its initial ruling of the energy market investigation that PPM customers have higher actual and perceived barriers to switching that arise from both lack of internet connectivity and the need to physically change meter to switch to a wider range of tariffs.

Driving consumer and societal outcomes through company performance should remain a key ambition of Ofwat so that it can continue to demonstrate the legitimacy of a privatised water sector even with the reduced risk of re-nationalisation following the recent general election. Developing a richer understanding of company performance is valuable, providing the commitment to do so leads to consistent and comparable metrics made visible to a wider audience, including customers.

The Warm Home Discount (WHD) scheme currently provides a payment of £140 (inclusive of VAT) towards energy bills, and also contains provisions to carry out projects to help low-income and vulnerable households to better afford their energy bill. The scheme was introduced by the Government in April 2011 and is an obligation on energy suppliers funded through bills.

Over the last year, NEA has worked alongside Citizens Advice on a number of issues in order to facilitate better outcomes for fuel poor and vulnerable households in the energy market.

Over the last year, NEA, alongside other consumer groups, worked with Ofgem to secure some key improvements in the treatment of domestic customers. In particular, we worked to ensure that low income and vulnerable customers had adequate protections in gas and electricity markets.

NEA has a long-standing interest in smart meters and their roll-out in Great Britain and Northern Ireland, particularly with regard to their impact on vulnerable consumers. NEA believes that smart metering has the potential to provide real benefits for vulnerable and low-income householders, but only if these individuals are effectively engaged and supported throughout their smart meter journey.

NEA Cymru welcomes the opportunity to respond to the committees inquiry in to fuel poverty and would like to thank the Committee for focusing on this important issue.