E.ON welcomes Citizens Advice and Social Market Foundation report on social tariffs and energy efficiency

E.ON today welcomed the publication of the Social Market Foundation (SMF) and Public First report for Citizens Advice, calling it a “clear and comprehensive” set of proposals for supporting the most vulnerable in society by helping to reduce their energy bills for the longer term.

E.ON UK Chief Executive Michael Lewis said: “This new report for Citizens Advice sets out the stark reality of rising energy costs and the impact on people right across the country. It’s vital that there is a clear and comprehensive understanding of the issues facing consumers today and of the past failings in this market.

“The cost of energy has become unaffordable for many and is expected to remain unaffordable for a significant amount of time until wholesale costs fall back to levels last seen in 2021. For that reason as a first step we must target support at those who need it most and I strongly support the principle adopted in the SMF report that any support should ‘provide a direct reduction in energy bills rather than general income support’. Not only does this reduce bills at source, it can be funded in a fairer way through general taxation, rather than paid for through energy bills which would put an unfair burden on both the poorest in society and the squeezed middle.

“Most energy suppliers already have the processes in place to deliver this type of support for next winter, for example via a more targeted Energy Bill Support Scheme (EBSS). We should also take heed of the conclusions of this report to help deliver an enduring Government-funded social tariff from April 2024 so vulnerable people are properly supported beyond the current crisis.

“Longer term, the only viable option to reduce energy bill price shocks we have seen over the last 12-18 months is to end our reliance on imported fossil fuels. We do this by reducing energy demand in a nationwide campaign of energy efficiency and switching to home-grown renewable electricity instead. Our plea to the Government has always been to push hard on energy efficiency at every opportunity. It makes people’s homes more comfortable, cuts energy use and energy costs, grows the economy with new green collar jobs, reduces our reliance on imported fossil fuels and contributes to net-zero on a sustainable basis.”

Michael Lewis added: “Next week’s Spring Budget should take the next steps to helping customers by committing to a targeted energy bill support scheme for winter 2023/24, confirming that an enduring social tariff will be operational by Spring 2024 and that ECO plus will be ramped up so that from next year, an extra £1bn of new money is invested in loft and cavity wall insulation.“

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