Our commitment to supporting customers this winter

Energy Charter FAQs

• Are all consumers likely to benefit from the commitments in the charter?

  The Charter is designed to help consumers in need. So, while its protections extend to all households, in practice it’s expected that customers in debt or who are vulnerable because of age, disability or chronic illness are more likely to avail of the protections it offers.

• What does making a financial commitment to a hardship fund involve – how much will be contributed? Who will look after the hardship fund, and how can consumers get the support?

  All suppliers have committed to supporting a hardship fund for customers in need. Contributions will be made to a fund or to another charity of the suppliers’ choosing or to in-house funds managed by the companies themselves. The amounts being donated are at the discretion of each individual supplier. Who is eligible for support and how they can access help is being handled by the funds themselves. These funds are being aimed at those that are struggling most with their gas and electricity payments. We are confident that charities will be able to get it to those most in need.

• What will reducing the maximum debt repayment for consumers mean in practical terms?

  Pre-payment customers in debt to their suppliers are expected to pay off some of what they owe when buying more gas or electricity as part of a debt repayment arrangement. Under the existing Code of Practice overseen by the Utility Regulator a supplier can deduct up to 40% from a purchase of electricity or gas to reduce debt. However, by signing up to the Charter, suppliers have agreed to halve that figure. This means at least 80% of any new payment will go to securing additional supplies of gas or electricity. Suppliers will, however, continue to work with customers to make sure that any debt arrangements fit their own specific circumstances.

• And how will suppliers maintaining an individual assessment of the ability to pay benefit consumers?

  Suppliers are already required to try to identify and communicate with customers who risk having difficulty with bill payments. By maintaining an individual assessment of the ability to pay, suppliers will be better informed when they consider whether to reduce a repayment rate or extend a payback period.

• Does the commitment to reviewing debt collection processes mean that consumers will not have to deal with debt collection agencies?

  While suppliers may prefer to deal themselves with the collection of debt from customers, the use of debt collection agencies may happen. Using such agencies however does not reduce the responsibility on suppliers to meet strict standards of care. A supplier is liable for a breach of the Utility Regulator’s Code of Practice on Payment of Bills no matter who collects debt on their behalf.