Memorandum submitted by Scottish Gas
INTRODUCTION
Scottish Gas is the largest provider of domestic
energy in Scotland. We are very conscious of our responsibility
as energy providers towards our more vulnerable customers and
have put in place a broad range of measures to meet our social
responsibilities. The chief limitation to better targeting of
these measures is our capacity for identifying qualifying customers
and to this end we advocate better data exchange between energy
companies and relevant NGOs and agencies.
Details of the main steps we take towards addressing
fuel poverty are set out below.
WINTER REBATE
Scottish Gas' Winter Rebate offered a rebate
to our most vulnerable customers at the time of high consumption
and to offset the impact of recent price rises. Two rebates were
offered to customers, one of up to £60 (£30 for gas
and electricity) over the winter of 2005/2006 and another of up
to £90 (£60 for gas customers and £30 for electricity)
over the winter of 2007.
Targeting of Winter Rebate
The qualification criteria for Scottish Gas'
Winter Rebate essentially mirrored the Government benefits prescribed
for Fuel Poverty/EEC measures and were based on the existing tools
we had available.
For Winter Rebate I we identified those eligible
customers through direct mail outs. These mailings were targeted
based on MOSAIC and our own fuel poverty indices. In addition
we ran numerous campaigns in local and national media to highlight
the rebate. These campaigns included editorials and adverts in
key areas of high poverty.
Winter Rebate II was extended to offer 80,000
Winter Rebate Payments. Those additional qualifying customers
were identified though charity referrals through our charity partners.
ESSENTIALS SOCIAL
TARIFF
Scottish Gas' Essentials Tariff was launched
in February 2007 offering 140,000 eligible customers the equivalent
of our monthly direct debit rates which is our lowest standard
gas and electricity tariff. Identifying those customers who qualify
for the Essentials tariff is a phased out process.
Those Scottish Gas customers who have already
benefited from our Winter Rebate have automatically been rolled
onto the Essentials tariff. In addition existing Scottish Gas
prepayment customers who are in receipt of at least one of a number
of Government benefits will be eligible for the Essentials tariff.
Awareness of the Essentials tariff will
also be driven through local and national media. We are also working
with our charity partners (Help the Aged, Save the Children, Scope,
RNIB, National Debtline, Capability Scotland) to effectively signpost
those customers who might be eligible. We have also recently embarked
on a mail out to our Prepayment meter customer base to encourage
take up.
HERE TO
HELP
Here to HELP is an innovative fuel poverty programme
aimed at improving the lives of people living in some of the poorest
communities in Britain. The scheme not only offers free insulation
which can help reduce energy bills, but also brings an improved
standard of living through benefits heath checks and other free
products and services offered by Scottish Gas' charity partners.
Customers are also given direct access to the
services, products and support from charity partners under the
scheme who include Help the Aged, Capability Scotland, Save the
Children, RNIB Scotland and National Debt Line).
Home Energy Care Register
Home Energy Care is a priority service register
providing essential services for some of our most vulnerable customers.
The service includes annual safety checks, a password scheme and
the provision of specially designed appliance controls and adaptors
for older people, those with disabilities and those who are chronically
sick. It enables the company to record any specific requirements
customers have and provide them with the right services. It will
enable us, for example, to ensure that the sick and elderly are
not left without heating, hot water or cooking facilities for
extended periods of time regardless of their ability to pay.
Scottish Gas Energy Trust
Scottish Gas Energy Trust is part of the £10
million British Gas Energy Trust set up to help customers who
are having difficulty with their energy and other essential household
bills. In addition to making grants to people in debt the Trust
provides funding to the voluntary sector and registered charities
assisting in the prevention and relief of poverty, with particular
emphasis on fuel debt.
IDENTIFYING VULNERABLE
CUSTOMERS
We identify "vulnerable" customers
through a number of different methods.
— Through Scottish Gas' existing programmes
such as our Winter Rebate and our Essentials social tariff—customers
are identified as being potentially vulnerable using receipt of
prescribed government benefits as an indicator;
— Face to Face assessments—our
front line Debt Representatives for example have been given training
to identify symptoms of vulnerability when carrying out their
day to day visits as part of our normal debt recovery processes;
— Our front line agents may also identify
customers vulnerability through general contact from the customer
BETTER INFORMATION
EXCHANGE WITH
OTHER AGENCIES
It is true to say that, nothwithstanding the
above measures, one of the barriers we encounter in extending
fuel poverty schemes to a wider range of customers vulnerable
to fuel poverty is our ability to identify them. We can and do
work with our charity partners subject to the requirements and
limitations of data protection legislation.
In the past we have worked with Government agencies,
including the Department of Work and Pensions to identify customers
who are in receipt of benefits and who may therefore qualify for
our social tariff or inclusion in one of our schemes. This partnership
working has been withdrawn to reflect a stronger emphasis on data
protection. It has had a negative effect on our ability to target
vulnerable customers to maximum effect. In our view it would be
of significant benefit to us, and more importantly to those customers
who may be vulnerable to fuel poverty if we had more formal and
systematic data exchange mechanisms with Government and government
agencies including:
— Department of Work and Pensions.
— Health Agencies, especially those
working at community level such as health visitors
— Community groups, such as community
health partnerships.
Carol Aitken
Corporate Affairs Manager
June 2007
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