Blueprint For Fuel Poor Payment Scheme Published

BLUEPRINT FOR FUEL POOR PAYMENT SCHEME PUBLISHED Ø New four stage approach to financial exclusion could help fuel-poor Ø An estimated 4 million households could benefit from blueprint Ø New approach backed by wide range of organisations A blueprint which could help fuel-poor households without bank accounts get access to cheaper energy payment schemes was outlined in a new report announced today (Tuesday). The report, funded by Innogy and conducted by National Energy Action (NEA), the New Economics Foundation (NEF) and the Personal Finance Research Centre (PFRC) at Bristol University, looks at what role financial bodies such as Credit Unions could play to help fuel-poor and low-income households get access to cheaper energy payment tariffs like Direct Debit. The report, which was launched today (Tuesday) at a seminar hosted by energy regulator Ofgem, is the result of a 10-month research project forms part of Ofgem's Social Action Plan. Market research conducted for the project indicates that there are 4 million households, who currently pay for their energy by cash or prepayment meter, who could take advantage of at least one of the services offered through the Factor Four approach. Brian Wilson, Minister for Energy, Department of Trade and Industry said: "Access to financial services can help low-income households in a variety of ways, including helping them get access to cheaper tariffs for their fuel. "This is an innovative approach which deserves to succeed; and I hope that the pilot projects which flow from this study will be successful in helping people be more comfortable in their homes." Callum McCarthy, Chief Executive of Ofgem said: "Some ways of paying for energy are more expensive than others. Exclusion from financial services means that some customers have less choice over payment options than others. This research has come up with a creative approach to overcoming this barrier and helping customers most in need." The model around which the research was designed, integrated four key factor areas: · energy advice · budgeting and money advice · take up of energy efficiency measures · bill payment. Brian Count, Chief Executive, Innogy said: "Innogy were pleased to sponsor and be actively involved in the production of this report, which will help find new ways of delivering practical help to those most in need." Other organisations that have been involved in the research have welcomed the report: Pat Conaty of NEF said: "Fuel poverty is often caused or exacerbated by financial exclusion. Our model addresses this with a social business plan for a co-ordinated response to both these problems." William Gillis, Chief Executive of NEA said: "This project provides a means of reaching households in fuel poverty that currently fall outside the groups targeted for assistance." Sharon Collard of PFRC at Bristol University said: "The market feasibility study indicates that an integrated approach to tackling fuel poverty has the potential to benefit a significant number of households across the UK." Other groups supporting the report's recommended approach include banks, regulatory agencies and consumer bodies. All partners are supporting the report's recommendations for establishing Factor Four pilots in Birmingham, Liverpool and Portsmouth. ends Notes for editors 1. Members of the media are invited to attend the launch of the report "Ending Fuel Poverty: a Factor Four Approach" on Tuesday, 5 March, 2.30 to 5 pm, at the offices of Ofgem, 9 Millbank, London. Please contact Mary Unan at NEA on 0191 261 5677 if planning to attend. 2. Speakers at the Ofgem seminar are · Sharon Collard, Personal Finance Research Centre, University of Bristol · Pat Conaty, New Economics Foundation and one of the report's authors · Phil Kear, Innogy · Jenny Saunders, NEA 3. Copies of the Report "Ending fuel poverty and financial exclusion - A Factor Four approach" are available on the Ofgem website at http://www.ofgem.gov.uk/public/pub2002.htm Hard copies of the summary Report will be available from the distribution centre by telephone: 0116 277 2617 or by email: distribution@ofgem.gov.uk from 7 March. 4. Fuel poverty among poor consumers is exacerbated by their exclusion from financial services: - 1.5 million households in Britain have no bank or building society account - 4.4 million households have very limited access to financial services - one in five adults has no current account - the cheapest payment options are open only to direct debit customers - 4 million households in the UK are in fuel poverty, needing to spend over 10% of disposable income on energy in the home 5. Members of the Factor Four Advisory Group are · Virginia Graham, Director, Social and Environmental Affairs, Ofgem (Chairman) · Rob Potter, Department of Trade and Industry · Caspar Henderson, Senior Policy Officer, Utilities, Consumer Association · Lesley Davis, Director of Policy, energywatch · Alan Jarvis, Director, Money Advice Trust · Peter Kelly, Deputy Head of Community Finance, Barclays Bank · Yvonne Constance, Non-Executive Director, Innogy · Philip Kear, Director, Social Energy Action, npower · Andrew Holder, HM Treasury · Paul Jones, John Moores University, Liverpool Research Partners are · Pat Conaty, New Economics Foundation · Jenny Saunders, Head of Press and Public Relations, NEA · Sharon Collard, Personal Finance Research Centre · Elaine Kempson, Personal Finance Research Centre 6. Ofgem is the Office of the Gas and Electricity Markets, regulating the gas and electricity industries in Great Britain. Ofgem's aim is to bring choice and value to all gas and electricity customers by promoting competition and regulating monopolies. Ofgem is governed by an authority and its powers are provided for under the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000. 7. Contact Details for the research partners: Pat Conarty, New Economics Foundation on 020 7407 7447 Jenny Saunders, NEA on 0191 261 5677 For further Ofgem press information contact: Richard Hunt on 020 790 7158 Danny Wilkinson on 020 7901 7022 Rob Jones on 020 7901 7484 Out of hours 0781 8457 969 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/05/20020305BIT00480/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/05/20020305BIT00480/wkr0002.pdf