Cost Of Living Crisis Saving IDEAS

We know that one of the the main concern for people is the high inflation and how this and various factors have caused a cost of living crisis, leading to higher prices for food, petrol, gas, and electricity. Within the United Kingdom (UK), the Bank of England is addressing this issue through a strategy known as quantitative easing and tightening. Since we are in a system where people rely on credit (bank loans, credit cards, financing and mortgages), central banks are increasing the base rate, making borrowing or obtaining credit more expensive. The idea behind this approach is to encourage people to borrow less, spend less, and save money with banking institutions where interest rates on savings should increase. Consequently, this reduces the circulation of credit in the market, decreases demand, and theoretically should bring prices down, thereby reducing inflation.

Like many families, I have been trying to navigate this current crisis, with one of the main concerns being the cost of gas and electricity. It is important to keep your home warm during the harsh winters and to have access to electricity for household appliances.

I would like to share some tips, guidance, and quotes to help you communicate and correspond effectively with your energy suppliers during this cost-of-living crisis. I have utilised these successful techniques for myself, family, and friends, that enabled changing the payment options that fit our needs. Therefore would like to highlight how you can learn to switch from a prepaid top-up meter to a credit meter, that provided me, family and friends with better options for managing our budget. This allowed us to plan how much to pay and set payment intervals for gas and electricity.

Reason for changing

• Minimise travel for getting top-ups and save time for other activities.
• Don’t get caught off guard when gas and electricity run out at odd hours.
• Better forecast your budget with suppliers by setting a consistent payment amount, spreading the cost over the year.
• Accumulate credit during summer months due to reduced usage and have a surplus for winter months.
• You can opt for a smart meter with credit meter mode to monitor your energy use and manage your budget, or a traditional credit meter (although the production of such meters has decreased, making it challenging to find suppliers that offer them).
• Most prepaid meters have the highest unit rates and standard charges.
• Many energy suppliers offer discounts for setting up direct debit payments, saving you time and allowing you to plan a budget by deciding how much you want to pay each month.”

Standard Licencing Condition (SLCs)

Energy suppliers have a requirement to adhere to SLCs (Standard Licensing Conditions), which are a set of enforceable rules that establish the standard for how your energy supplier should behave, provide information, and carry out customer service processes. This includes treating customers fairly and identifying consumers in vulnerable situations and responding to their needs.

What to do

I got in contact with the energy suppliers through phone and email. I then raised queries that energy suppliers are required to adhere to Standard Licence Conditions (SLCs) and corresponed on the various payment options. For instance, “SLC 27.1 mandates licensees to provide a credit payment option that includes cash payment after receiving a bill for gas and/or electricity already consumed, in addition to a prepayment option. Licensees are obligated to offer a diverse range of payment methods to all customers, including those without access to a bank account“.

The reason for this is that failure to provide such payment options could be interpreted as being discriminating against such customers, therefore increasing their vulnerability and worsening their situation.

Outcome

Most energy suppliers would be amicable to discussing further and confirming set agreements with their customers upon request to change the meter. Though some might have a few stipulations, e.g.,

• Type of building you live in and might be difficult for communal flats, though not impossible;
• Renting through landlord or housing association.
• Complete a credit check though some energy suppliers allow this to be deferred if you provide up to 3-month up front deposit payments.
• Set up direct debit, with a lot of suppliers giving discount for customers on this payment method. With a few reasons being, this, allows them to minimise their administration costs and have better forecasting of future accounts.

Who’s this viable for

• You are not in debt with the energy suppliers.
• Finished paying off energy suppliers’ debt and don’t want a prepaid meter;

If in debt can discuss with the suppliers that this not safe, practical or conducive to the situation, especially considering the vulnerability worsened due to having a prepaid meter and request a switch for the following reasons:

• Energy suppliers have an agreement not to install prepaid meters for individuals who are 85 years old and live alone or with someone who cannot top up a prepaid meter. However, exceptions can be discussed for individuals who have reached the state pension age.
• If you are disabled or have a health condition that makes it difficult for you or someone in your home to reach the top-up prepaid meters, or if you are unable to travel to the nearest top-up shop due to lack of a vehicle or inability to walk, you may qualify for an exemption.
• This exemption applies to individuals whose health condition requires the continued use of electricity for essential devices such as stair lifts or refrigerators used for storing medication.
• Additionally, individuals who are diagnosed with a terminal condition or are living with someone who has a terminal illness are exempted from having prepaid meters.
• Furthermore, if you cannot afford to top up your meter daily and prefer to make a monthly payment based on your actual usage, you may be eligible for an exemption. This applies to individuals who are pregnant, have children under 5, are experiencing mental health conditions, or are dealing with bereavement.

The key is that, although you might be in debt, if you can communicate, give confidence, and convince the suppliers that you have a payment plan strategy for clearing the debt, they then might find it acceptable to make arrangements for switching you to a credit meter.

Alternative if you cant meet the direct debit or quartley payment then you should contact your energy suppliers as soon as possible and communicate what you can afford, for a payment plan to be created.

Direct Debit Concerns

The main concern with direct debit would be that it requires consumers to regularly review their utility accounts to ensure that the direct debit, particularly during the summer months, has not accumulated too much credit for the winter months. If you have built up too much credit, you can request a refund from the energy supplier into your bank account. If the energy supplier refuses to refund you, they must provide a valid reason for their decision. If you believe this decision is unfair and are unhappy with the response, and cant be resolved with the energy supplier. Then raise a complaint with the Energy Ombudsman after two month period has past. The Energy Ombudsman can help in obtaining a refund of the credit and potential compensation if proven that customer has been mistreated.

Energy Suppliers Vulnerable Customer Support

Most energy suppliers offer several support schemes for vulnerable customers facing difficulties. These schemes are designed to assist individuals with low incomes, those who are pregnant or have young children, individuals of pensionable age, those with health conditions, disabilities, or medical dependencies. If you find yourself in such challenging circumstances, you should reach out to your energy supplier. I have highlighted a few support schemes below:

• Eon Next are introducing the Winter Affordability Support Scheme in October 2024, where eligible customers are to recieve 50% for their energy bills funded. Additionally, there is a fund to support struggling customers.
• EDF have a support fund for struggling customers and is going to add £30 credit to eligible customers this December 2024.
• Octopus Energy have the Octo Assist Grant Scheme for eligible customers.
• British Gas Energy Support Fund are available from 2nd October 2024 for eligible customers.
• Also suppliers can provide one off £150 payment for the year, thats part of the Winter support scheme.

Other Useful Support

There are further support for consumers, particularly the following:

• Discussing through phone or email with the energy suppliers and you can also find further advice and guidance on their websites.
• Contact Citizen advice on phone or email or search their website for further guidance and support.
• Ofgem are also contactable to get further guidance or support.
• BBC Action Line provides further organisations you could contact for guidance and support.
• National Grid Demand Flexibility Service (DFS) scheme rewards homes for avoiding energy usage during specific times, thereby incentivising them with lower energy bills. If you require a smart meter or want to know the criteria for joining the scheme, please contact your utility supplier.
• Money Saving Expert Energy Crisis Help, is a website that provides guidances, ideas and techniques for people struggling with their gas and electrical bills.

Disclaimer

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