Reference to social services
70. Apart from improving the operation of existing
processes for dealing with debt problems, the ERA proposed that,
if all else failed, vulnerable customers should be referred to
social services.[119]
The ERA described to us the rôle for social services that
it envisaged: "to undertake an assessment to decide on the
most appropriate action, which might include help in the management
of the customer's financial affairs, for example by setting up
arrangements with a third party such as a relative or a court."[120]
71. Other witnesses were frankly sceptical about
this proposal, given the huge existing demands on social services
departments.[121] Ofgem
suggested that the energy companies should not depend too heavily
on social services but should seek to work with a wide range of
groups—such as charities and voluntary bodies—that
could provide support to customers in repayment difficulties.
The regulator felt that social services departments could be of
most use in, for example, helping to identify family members who
could assist vulnerable customers.[122]
72. We understand from the tone of the ERA's September
paper that the social services departments were even more concerned
than our witnesses about the apparent dependence on them to sort
out energy customers' problems. The Association of Directors of
Social Services told the ERA that their priority was those already
identified as vulnerable by their own systems. While they would
check any referral by an energy company to see whether they had
already classified the customer as vulnerable—and, if so,
would follow up the referral—they could not simply take
on the cases of any customers identified as vulnerable by the
energy companies.[123]
73. The ERA subsequently agreed with the Association
of Directors of Social Services a best practice approach to consulting
local social services departments and jointly identifying customers
in need of support. This approach comprised a number of steps.
While the process was under way, and if at the end of it the customer
was agreed to be vulnerable, the fuel supply would not be disconnected.
Once an energy company had identified a customer as vulnerable
and at risk, it would ask the social services department to check
whether the customer was already on the department's 'at risk'
list. If so, social services would arrange support. If not, the
supplier would provide social services with its reasons for assessing
the customer as vulnerable to enable the department to decide
a course of action. If necessary, the supplier would carry out
a second visit to the customer to re-assess the situation and
gather further evidence of vulnerability for social services.[124]
Apart from visits to customers agreed to be vulnerable,
in extreme situations the social services departments might intervene
by arranging power of attorney or applying to the Court of Protection
to help with the management of the customer's financial affairs.[125]
74. The ERA concluded that, although the number of
times departments are contacted by companies will vary from area
to area, local offices should not normally receive more than one
or two referrals a month of customers considered by their supply
companies as being potentially at serious risk. The ERA considered
that the caseload would be small because: "Disconnections
as a whole continue to fall and suppliers' systems have improved
to the point that customers identified as vulnerable are not disconnected."[126]
75. While the ERA's latest proposals have reduced
the burden which the earlier ones appeared to place on local social
services offices, this has merely confirmed that the onus is on
the companies themselves to identify, advise and support vulnerable
customers. For the reasons already explained, we are not convinced
that they will be able to provide a complete safety net. However,
they must try.
95 
