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OFFER/Ofgas
Social Action Plan Discussion Document
A
Response from UNISON Scotland Joint Utilities Committee
1. UNISON Scotland welcomes this discussion document and supports
the need to review the present action plans.
2. We do not believe that price competition alone is sufficient
to assist those with greatest need. Greater emphasis is needed on
assisting people to reduce fuel use as well as the environmental
benefits of such a policy.
3. We are not convinced that in the context of the benefit system
price reductions can be regarded as equivalent to income for disadvantaged
customers. We believe that price controls and other measures should
directly assist these customers. Competition alone is not sufficient.
4. A range of support measures are required which would include
low user tariffs. However, disadvantaged customers are not all low
users (e.g. low income families) and therefore we would support
controls on prepayment charges which went some way towards reducing
the significant additional costs compared with direct debit payment
customers. There is some evidence that under the current arrangements
low income customers are subsidising better off customers.
5. We support the availability of the widest range of payment methods
at no extra or differential cost to customers. This should include
facilities for direct cash payments and companies should be expected
to provide these facilities and to justify the closure of such facilities.
6. We support the suggestion of closer working with credit unions.
UNISON branches are heavily involved in the establishment and running
of credit unions which have been a major support particularly to
low paid workers and their families.
Staff secondment particularly for new or expanding credit unions
would be of considerable assistance. The most effective approach
to debt prevention is to take measures to avoid the build up of
debt.
These should include a requirement for more frequent meter reading
and greater promotion of the facility for customers to send in replacement
readings. Companies could do more to support debt advice services.
There is a need for a detailed review of Fuel Direct and the possibility
of new budgeting arrangements through the social security system
which should attract similar discounts to direct debit. Customers
who have repaid debt should have the option of remaining on the
Fuel Direct scheme until new arrangements are in place.
8. We would support a compulsory levy on all households to provide
funds for energy efficiency and the use of these funds should be
administered on a not-for-profit basis. These additional funds should
be combined with a more co-ordinated approach to the current sources
of funding for energy efficiency. Grant assistance should be the
preferred approach rather than loans. UNISON would also support
greater use of CHP schemes and other initiatives such as ‘Affordable
Warmth' and Scottish Power/EAGA.
9. It is noticeable that new suppliers have fewer vulnerable customers
than the more established suppliers. There needs to be stricter
monitoring to ensure that all companies meet their obligations in
this regard.
10. We welcome the recognition in the document that the use of
prepayment meters can simply be a cover for self-disconnection and
rationing. There is an urgent need for greater research in this
area. Guaranteed Standards should apply to all suppliers. There
should be minimum standards on the provision of charging points.
UNISON would also support a minimum level of emergency credit of
£5 for Gas and £10 for electricity. Consideration should
be given to methods of spreading costs across the year and limiting
debt recovery to non-winter periods.
11. We believe that there is evidence that some new suppliers are
deliberately seeking to avoid supplying customers who use cash-based
payment schemes. The regulator needs to take action in this area
to ensure that disadvantaged customers benefit from competition.
Further action is also needed to monitor consumer experience of
doorstep selling.
12. On the supply of information there is a priority need to ensure
that all suppliers promote awareness of their social obligations
to customers. This should include improved liaison with social work
and housing staff who have contact with vulnerable groups.
13. UNISON Scotland would support the establishment of a review
group on the plan in Scotland.
Dave Watson Senior Regional Officer (Utilities)UNISON Scotland
July 1999
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