Energy UK published a briefing on 8 December 2022 setting out the support its member suppliers provide to customers as energy bills rise. The industry body said suppliers in the UK provide discretionary support of around £54 million on top of the more than £1 billion in mandatory schemes they deliver every year1. Those mandatory schemes include funding for the Energy Company Obligation and the Warm Home Discount1.
The briefing attributes the pressure on bills to the unprecedented cost of gas during the global energy crisis, and notes that 30 suppliers have exited the market since August 20211. It says all major retail suppliers have their own funds, independently managed by fund administrators or in partnership with consumer bodies such as Citizens Advice1. Energy UK also lists support measures it says suppliers put in place at the start of the Covid-19 pandemic and have committed to continuing, including payment holidays, restructured payment plans and credit advances to customers on prepayment meters1.
"Suppliers in the UK provide discretionary support of around £54 million on top of the more than £1 billion in mandatory schemes they deliver every year."
The briefing sets out measures company by company. Centrica, owner of British Gas, will donate 10 per cent of all profits to the British Gas Energy Support Fund for the duration of the energy crisis, with an immediate £12 million donation that Energy UK describes as double the previous contribution and more than 10 per cent of first half pre-tax profits1. British Gas froze direct debit payments through the winter, which Energy UK says kept an extra £50 in customer pockets, and doubled emergency credit for prepayment meter customers so they can continue to use energy until £10 over their prepayments, up from £51. The British Gas Energy Trust provided £1.8 million of debt relief, emergency fuel vouchers and boiler replacement grants in the last year, with a further £3.6 million for 49 frontline charities1.
EDF Energy doubled financial support for customers in 2022 to £10.4 million, added £5 million to its Customer Support Fund for a total of £6.4 million, and brought forward £20 million of Energy Company Obligation spending into 20221. E.ON's Energy Fund stands at over £3.5 million, with more than 10,000 awards totalling nearly £6 million made1. Octopus created a £5 million Octo Assist fund, which Energy UK says has helped over 50,000 customers, was increased to £7 million and is now being doubled to £15 million1. OVO announced a £50 million Customer Support Package, including payment holidays on debt repayment for all prepayment meter customers and a 200 per cent increase in emergency top-up credit1. ScottishPower has increased resource in a dedicated affordability team and works with StepChange on specialist debt advice1.
| Supplier | Measure cited in the briefing |
|---|---|
| Centrica / British Gas | £12m immediate donation to the Energy Support Fund; direct debits frozen over winter; emergency credit doubled to £10 |
| EDF Energy | £10.4m total financial support in 2022; Customer Support Fund raised to £6.4m; £20m ECO spend brought forward |
| E.ON | Energy Fund over £3.5m; more than 10,000 awards totalling nearly £6m |
| Octopus | Octo Assist fund rising from £5m to £15m; over 50,000 customers helped |
| OVO | £50m Customer Support Package; payment holidays for prepayment meter debt |
| ScottishPower | Dedicated affordability team; partnership with StepChange |
Why it matters for households
The figures describe help that sits outside the price cap, which limits what suppliers can charge for unit rates and standing charges but does not limit the total bill a household pays. Discretionary funds are awarded case by case, usually by an independent trust or charity rather than the supplier itself, so eligibility and amounts vary by company1. The mandatory schemes named in the briefing, the Warm Home Discount and the Energy Company Obligation, are the routes through which support is delivered automatically or through help with energy bills and debt rather than at a supplier's discretion1.
For a household's energy independence, the practical point is where the money comes from. Discretionary support depends on a supplier's own finances and willingness to fund it, and Energy UK notes that more supplier failures will lead to higher bills1. Mandatory schemes are funded across the industry and are not tied to any one company's balance sheet. The briefing does not set out how many households receive discretionary help in total, nor the average award across suppliers, and no combined figure for the two categories is given beyond the £54 million and £1 billion totals1.
What happens next
The briefing records several commitments running through the winter of 2022-23, including Centrica's profit donation for the duration of the energy crisis, British Gas direct debits frozen through the winter, and OVO's payment holidays for prepayment meter customers over the same period1. Octopus says its electric blanket scheme will run again this winter1. No closing date is given for the discretionary funds as a whole, and no further update from Energy UK has been reported1.