Around 4 million “vulnerable” households will hand over nearly £500 million more than needed to the Big Six energy suppliers this year due to being trapped on expensive tariffs, according to new Ofgem data.
The stats, compiled by renewable energy supplier Bulb, found that despite the introduction of a new emergency price cap for 1million homes, 3.9million vulnerable households will miss out.
In a submission to Ofgem’s consultation on the emergency cap, which closed yesterday, Bulb urges the Big Six to do more to help those who Ofgem recognise are in desperate need.
Ofgem say the 1million vulnerable households who will benefit from the cap will save £110 each on average. That means the 3.9million homes are missing out on a potential combined saving of £429m.
The households who will be left out include vulnerable people who receive disability-based and income-based Government benefits, according to Ofgem.
It is worth noting that the real figure of those left behind by Ofgem is likely to be higher, with their estimate excluding those in receipt of child benefit and tax credits from HMRC.
These revelations leave energy companies in a position of responsibility to ensure that they lower their tariffs to avoid the tragedy of vulnerable families struggling to keep warm this winter. Failure to take action would be unforgivable.
Bulb, the UK’s fastest growing renewable energy company with 200,000 members, today calls on the Big Six suppliers to reduce their Standard Variable Tariff (SVT) rates to ensure that millions of households do not have to suffer on tariffs they cannot afford as the months get colder.
Bulb Co-founder Hayden Wood said: “We’re pleased to see Ofgem doing everything they can to safeguard vulnerable households, but we believe energy suppliers also have a responsibility to stop struggling customers being overcharged on their bills as the months get colder.
“Families struggling to heat their homes in winter is a tragedy, and something that has no place in 21st century Britain. Bulb already has a tariff that could save families over £200 versus the Big Six.
“We believe it is time for those companies to step up and end the injustice of those least able to pay being charged the highest rates.”
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