15 Apr 22
Customers

EDF doubles financial support for customers to £10 million as affordability crisis bites

  • Customer calls about debt increased by 41% year-on-year over winter
  • EDF to increase its customer support fund to help customers in debt and with more energy efficient white goods
  • EDF will spend an extra £20milion on energy efficiency measures for fuel poor households this year

Ahead of the April price cap increase, the number of customers calling EDF about debt increased by 41% over winter compared with the year before.

All suppliers have a duty to support the welfare of customers and last year EDF provided £5.2million in financial support to its customers made up of obligated support through the Warm Home Discount and voluntary help provided mainly through its customer support fund. However, the significant increases in global energy costs over the past year and ongoing volatility in the market is having an extreme impact on households, who are facing a broad cost of living crisis.

EDF analysis shows that a year ago, the 10% lowest-earning households in the UK spent £1 in every £12 of their budget on energy. This increased to £1 in every £8 from April and could rise to £1 in every £6 from October.

To help its customers, EDF is today announcing it will set aside an additional £5million on top of the £1.4million it had already allocated this year to its Customer Support Fund in 2022. It means that in addition to £4million of Warm Home Discount, EDF will set aside a further £6.4m to support customers in need.

The £6.4million will be used to help customers in debt or facing financial difficulties, as well as support buying energy efficient white goods to help people reduce their bills long-term.

In addition, EDF will bring forward £20million spend on energy efficiency measures for fuel poor households this year to get as many homes as possible insulated against rising prices. EDF are the market leaders in ECO, with over 40,000 measures installed last year and since 2018, its installs have delivered more than £248million in lifetime bill savings.

In 2022, EDF will be upping the funding it provides to the Energy Company Obligation scheme (ECO) to more than £100million. To support this investment, EDF is asking Government to prioritise legislation of the new ECO4 scheme during this parliamentary session to avoid any further delays to this vital scheme.

With less than six months until Ofgem’s next price cap, EDF is calling for a national effort to make as many homes in Britain ‘Winter Ready’ as possible before prices go up again in October.

When bills were at £1,200 per year, loft insulation saved £165 a year. Against the £2,000 cap, savings are £250 a year and will be higher if bills continue to rise. A Government-funded extension of the Energy Company Obligation scheme (ECO) could cut bills for millions of homes permanently, as well as creating jobs and boosting the economy.

Philippe Commaret, Managing Director, Customers at EDF said:

“We know more people are going to struggle to pay their energy bills, so we’re doing everything we can to try and help, through offering more direct financial assistance and by insulating more homes, protecting those in fuel poverty from volatile global energy prices now and in future.

 “Worryingly, if current market trends continue, energy prices are set to increase again. And we know, this additional support we’re announcing today won’t be enough to help all those in need this year.  

“Whilst the Government’s strategy for our long-term energy independence has, rightly, been determined, households will need help before prices rise again in October through greater uptake of energy efficiency and financial help to those grappling with rising costs.”

ENDS

Notes to editors:

How to access these schemes:

Additional background:

  • EDF was the first supplier to set-up a support fund, providing £50m to customers in need to date.
  • This support package comes despite figures published in February showing that EDF made losses in the last financial year.
  • The Energy Company Obligation (ECO scheme) installs free energy saving measures and heating improvements to fuel poor households, helping to keep their homes warm and energy bills down.
  • The Energy Company Obligation (ECO) has provided 2.2 million of the UK’s poorest households with energy efficiency measures which will save £15bn over their lifetimes.
  • ECO is funded via all energy bills so it is essential that any expansion to the scheme would not be funded via increased levies on all energy bills.
  • At the end of March, the Office for Budget Responsibility predicted October’s price cap could increase by another 40% to £2,801 – nearly three times the level from last year.
  • The financial support available is broken down as follows:

 

2021

2022

Warm Home Discount

£3.7m

£4m

Support fund financial support

£1.5m

£1.4m

Additional 2022 funding

-

£5m

Total

£5.2m

£10.4m

For more information

EDF Media Team
24-hour press line: +44 (0)1452 652233
media@edfenergy.com

 

About EDF

EDF is helping Britain achieve Net Zero by leading the transition to a cleaner, low emission electric future and tackling climate change. It is the UK’s largest producer of low-carbon electricity(1), meeting around one-fifth of the country’s demand and supplying millions of customers with electricity and gas.

It generates low carbon electricity from six nuclear power stations and more than thirty onshore wind farms and two offshore wind farms, and operates one coal power station, EV charge-points, and combined heat and power plants.

EDF is leading the UK's nuclear renaissance with the construction of a new nuclear power station at Hinkley Point C, and is leading the development of plans for a replica at Sizewell C in Suffolk. Hinkley Point C and Sizewell C will provide low carbon electricity to meet 14% of UK demand and power around 12 million homes.

EDF also invests in a range of low carbon technologies including renewables, solar and battery storage. The company’s largest offshore wind farm is currently being built in Scotland and the 450 MW Neart na Gaoithe project will be ready in 2023. It is applying research and development expertise to improve the performance of existing generation and developing the potential of new technologies.

EDF is helping its customers, both in business and at home, take their first steps to sustainably powering their lives. Whether it is buying an electric car, generating and storing electricity or selling energy back to the grid. EDF is one of the largest suppliers to British business and a leading supplier of innovative energy solutions that are helping businesses become more energy independent. In addition, the company’s energy services business, Imtech, is one of the largest technical service providers in the UK and Ireland.

EDF is part of EDF Group, the world’s biggest electricity generator. In the UK, the company employs around 13,000 people at locations across England and Scotland.