Warm Homes Discount Being Applied to Reduce Energy Debts
Local fuel poverty group Energise Sussex Coast (ESC) is calling on members of the public to contact them if they know anyone whose Warm Homes Discount has been used by their energy supplier to pay off energy debt.
ESC’s energy advisers have recently discovered that energy supplier Utilita has been using the £150 Warm Home Discount payment – which is intended to support low-income customers with their winter energy costs – to reduce local customers’ energy debts, where they have them.
Rather than being able to top up their meter with enough money to put their heating on, customers are instead being forced to service debts for which they already have a payment plan set up.
In response to a request from ESC, Hastings’ MP Helena Dollimore has written to Utilita about the matter. On 29 December she wrote to ESC to say that she’d “received a response from Utilita that is very lacking and simply admits what you have already told me. I do not consider this … acceptable”. She has now written to Martin McCluskey MP, “to request that the matter is investigated and action taken accordingly”.
Energise Sussex Coast director Kate Meakin said: “We think this is really unethical practice and it is not what the government intended to happen with this payment. We give out a huge amount of fuel vouchers to people that do not have enough money to top up their meter.
“We know that many residents are going without heat regularly – or always – because they just can’t afford their energy costs. This situation will mean that many more Utilita customers are put in this situation. So if you know of someone that’s had their Warm Homes Discount withheld to pay-off energy debt then please get in contact with us: either by calling 01424 390 062 or by emailing us at [email protected].”
Utilita maintains, however, that it has acted in accordance with Ofgem guidance which “permits suppliers to credit the rebate against account debts”. Ofgem has confirmed that this is the case.
Founded in 2012, local community benefit co-operative Energise Sussex Coast works to tackle the climate crisis and energy injustice through community-owned renewable power and energy-saving schemes. It runs a free Energy Advice service to help local residents bring down the cost of their electricity, gas and water bills, which can be accessed by phoning 01424 390 062.
In 2024, it responded to over 9,700 calls to its helpline and distributed over £90,000 in fuel vouchers. Its sister co-op, Energise South, has raised community investment to finance and install solar arrays on nine local community buildings, including Baird Primary School and St Leonards Academy.
Energy prices in the UK are still 69% above winter 2020/21 levels andthe level of energy debt has increased to an all-time high, with millions of households owing a combined £4.43bn in debt. Meanwhile, energy giants have generated over £125 billion in profits on their UK operations since the energy crisis started, according to an analysis of company reports by the End Fuel Poverty Coalition.
CORRECTION
HIP 295 (published on 13 February) contained an article headed Utilita Misuses Warm Homes Discount. We accept that Utilita’s use of the Discount to reduce local customers’ energy debts where they had them was in accordance with the scheme rules as set out by the regulator, Ofgem. We also accept that we should have informed Utilita in advance of our publication so as to give them the opportunity to point this out. We apologise for these errors on our part.
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