OVO Energy has unveiled a £50million support scheme to help customers with their energy bills this winter.
The announcement comes in the wake of the Government’s decision to cut winter fuel payments for millions of pensioners.
The Big Six energy supplier said it had set aside the funding to cover a series of schemes, including direct financial support for customers struggling to pay their bills.
David Buttress, Chief executive said it is “on us” to help customers through the winter after the Government cut bills support for pensioners.
The change to Winter Fuel Payments will see around 10 million people will lose out on the £300 payment.
Previously, the universal payment helped around 11.5 million, but now, only those on means tested benefits such as Pension Credit with get the payment.
Critics argue that many who no longer qualify could still face difficulties paying their bills, as pension credit only tops up income to £11,300 a year for individuals.
OVO’s support package includes several measures to assist customers in this difficult time.
The company will offer direct financial support to those struggling with bills, as well as temporary reductions in direct debit payments. Customers can also benefit from one-to-one energy saving advice.
Additionally, OVO will provide free or subsidised upgrades to people’s homes. These improvements may include insulation, new boilers, or in some cases, heat pumps.
The scheme opens on October 1, but OVO’s website is already live for customers to check their eligibility.
To apply, customers will need to provide information about their monthly disposable income and up-to-date meter readings.
Buttress emphasised the company’s responsibility to support customers. He stated: “We know it’s on us to ensure our customers are supported through the winter months.
“That’s why our winter support scheme is bigger than ever this year with £50 million of funds.”
However he also called for a long-term solution, advocating for a social tariff saying: “We need to make the energy system work better for everyone.
“That starts with targeted support in the form of a social tariff so we’re not plugging the gaps – no one can be, or no one needs to be left behind.”
This proposed social tariff would likely take the form of a targeted discount energy deal for poorer customers, potentially below the price of the cheapest available standard energy tariff.
Other energy suppliers are also taking steps to support customers this winter. Octopus Energy, announced last month that it will continue its £30 million assistance fund.
Greg Jackson, Octopus Energy’s chief executive, has urged energy suppliers to “be helpful” to the government and provide extra support to those losing winter fuel payments.
These initiatives from major suppliers come as the energy industry faces ongoing challenges. The new energy price cap is set to take effect from October 1, potentially impacting household bills.
Energy companies are increasingly recognising the need for targeted support, especially for vulnerable customers.
The industry-wide response reflects growing concerns about fuel poverty and the importance of ensuring access to affordable energy during the colder months.
