Since 2004 Ofgem has encouraged suppliers to provide help and support to customers who might be struggling to meet their energy bills as part of their Corporate Social Responsibility (CSR).
In 2004 we issued important guidance to suppliers who might be considering developing tariffs aimed at vulnerable customer groups on the possible regulatory and competition issues surrounding such offers. Since then suppliers have developed a range of offers for customers.
The help offered varies from supplier to supplier but some examples include:
- Discount tariffs;
- rebates;
- benefit entitlement checks to ensure the customer is receiving all government benefits to which they are entitled; and
- trust funds which offer grants to customers for example to write off debts or purchase new appliances.
In 2005 we commissioned research to look at the help suppliers were providing to customers. The results suggested that in 2004-2005 suppliers spent around £110 million pounds on CSR activities.
Ofgem/DECC currently run an annual joint survey to collect information on suppliers CSR activities. However in view of the broad range of help offered by suppliers and noting the fact that suppliers vary in their approaches Ofgem has developed a Reporting Framework which provides greater visibility on the types of help offered by each supplier.
Ofgem also encourages network operators to have regard to their corporate social responsibilities and in 2004 we introduced a Customer Service Reward Scheme for electricity distributors.
The possible scope for introducing a similar scheme for gas distributors is being considered as part of Ofgem’s current work on the gas distribution network price controls.