1 April will see the government’s Warm Home Discount (WHD) and Energy Company Obligation (ECO) scheme thresholds drop from 200,000 to 150,000. The change means that all suppliers with more than 150,000 domestic customer accounts are required to participate in both of these schemes.
Data from Cornwall Insight shows that this increase in thresholds will see market coverage rise to 98%. The below graph highlights how the changing thresholds provide support to more of the market.
Tom Faulkner, Analyst at Cornwall Insight, said:
“According to Cornwall Insight’s research, the previous move from 250,000 to 200,000 customer accounts in April 2019 saw the market coverage grow to 95%.
“Suppliers can be voluntary ECO or WHD participants, which the above graph does not take into account. This aside, around 2% of customers cannot receive a benefit they may be eligible for because their supplier has not passed the threshold.
“Customer accounts are measured separately for electricity and gas. Therefore, the 2% could be anywhere between ~500,000 to 1mn domestic customers. However, not all of these customers will be eligible for the benefits that ECO and WHD offer.
“Regardless, it is clear to see that the changing thresholds have given a greater number of customers access to essential benefits, whether that be £140 credit under the WHD or energy efficiency measures under ECO.”
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These quarterly meetings aim to develop and share suppliers’ practical measures used to support vulnerable customers. Increasingly important with the regulator’s focus on the issue of vulnerability and ensuring these customers are treated fairly.
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