Spending plan delivers £100 million hike in help for fuel poor

Britain's Big Six energy suppliers spent £157 million on voluntary social programmes in 2008-09, a near three-fold increase compared with 2007-08 (£57 million). Most was spent on social and other discounted tariffs for vulnerable and fuel poor customers. Suppliers have exceeded their spending target for 2008-09 by £59 million.

The number of customer accounts on social tariffs grew to one million by March 2009 from 800,000 in October 2008.

The Government announced in the 2008 Budget a three-year commitment given by energy suppliers to increase their spending on social tariffs and other social programmes. Ofgem's report on the first year of the suppliers' commitment shows that each supplier met its target for 2008-09 and jointly they exceeded the target of £151 million set for the end of the period in 2010-11.

Maxine Frerk, Ofgem's Director of Governance, Consumer and Social Affairs, said "This is a very encouraging outcome for the first year of the commitment, especially in the current tough economic climate. We are particularly pleased to see the increase in the number of customers benefitting and encourage suppliers to continue to focus on how best to help their vulnerable customers who are struggling to pay their bills".

Other key points from Ofgem's report include:

Vulnerable customers on social tariffs received £130 million worth of discounts in 2008-09.

All suppliers (with the exception of E.ON) now have a social tariff that meets the new stricter definition set by Ofgem in July 2008.