Warm Home Discount Scheme - Be Warned and Be Aware - All that glitters is NOT gold!

Simon7685

I have read quite a few threads on here in recent months regarding the Warm Home Discount Scheme that is being introduced by the energy suppliers. At the same time I have responded with warnings to people, that it is not the wonderful scheme that people think it is.

If you are already on your suppliers existing social tariff, ie. British Gas Essentials then you WILL be worse off when you move to the new warm home discount scheme. Social tariffs that the main suppliers all have are being replaced with the Warm Home tariff, this means you will be forced to change to any one of their existing tariffs and will receive a rebate every winter quarter for the next 4 years. This year that rebate is set at £120.

I have just got a quote from British Gas for their cheapest tariff and compared this against the Essentials tariff I am currently on, based on my consumption for the last 12 months and it is quite alarming. We are all electric so this obviously only applies to electric consumption, though I would expect Gas results to mirror the same overall results.

Electric consumption January 2011 - January 2012 = 13864 KW/h

Essentials Tariff cost = £916.10

Online Energy Tariff (Our cheapest online tariff) = £1373.92 (+£457.82 less rebate £120 = net increase £337.82 or £28.15 a month)

Standard Tariff = £1432.97 (+£516.87 less rebate £120 = net increase £396.87 or £33.07 a month)

Price Promise April 2014 = £1506.55 (+£590.45 less rebate £120 = net increase £470.45 or £39.20)

I have been paying £76 a month for my electric which is correct when they stop the Essentials tariff I will be paying £104 a month an increase of £28 a month.

So if you are currently on a social tariff beware of changing to the Warm Home Discount Scheme now, just to get the £120 rebate. It is true that eventually everyone will be switched onto that scheme but it may be better to stay as you are until you are forced to change.

As I have documented elwewhere this scheme is a rip off and those that are currently in fuel poverty are only going to find themselves worse off as a result of it, while the energy companies boost their profits yet again. They are trying to seduce people by advertising the annual rebate of £120 but as my figures show and as the title suggests - All that glitters is most definately NOT gold.

I can't do the same for gas consumption as I don't have gas but I am 100% convinced that the results will net the same result - consumer worse off - energy supplier profits increased.

welshgal_2

I have been with Swalec for a number of years for prepayment electric. I am on the social tariff as disabled and housebound. Had a phone call from Swalec this morning asking me for the meter settings to be read back to them. They then informed me that social tariff has finished and my unit cost will jump from just over 8ppu to 15.85ppu. This basically doubles my electric bill per year (an extra £700 per year eek). They said I may or may not be eligible for the discount scheme mentioned above, just waiting to hear from them. This is still not going to help with the extra bills. Mentioned to Swalec that I may change suppliers as have found a cheaper rate and they were not interested.
Have now signed for the transfer to scottish power who are going to save me £250 per year. Still have to pay a lot but better than it would have been.
Have all companies stopped social tariff now or are some still offering this????

Sick_and_tired

I am with eon, with Incapacity Benefit & DLA, so should qualify under the "broader group" Warm Home. I went on-line, and the application form does not list these benefits, but lists benefits that are the equivalent, but not using the correct DWP terms. So I called, and was offered insulation (no thanks), and told to call another number - which was the insulation number, but gave me another number. So then I rang the next number given - that was the DWP number, and was then told to call eon on yet another number, not listed on their site. When I called they were very helpful and said these benefits did qualify for the scheme, but I had to fill out the on-line form. So I filled out the form but had to tick boxes for benefits I don't actually get (ESA and Disability Premium). And so feeling a little dazed & confused I wait until March to find out if I am to get the grant.

As an ex-IT professional, I can positively say that the form, information, and level of help from the main eon call centre would probably put most people off, and am quite angry on behalf of others who have been put off by this. Disabled people have enough problems, and little enough cash to allow any such help to slip away. Is this charade limited to eon, or are all the big 6 equally opaque on eligibility & application?

Simon7685

I think pretty much all of the big 6 have stopped accepting new customers onto social tariffs now. Some are continuing the social tariffs for existing customers for a set period of time.

However I have also discovered that this new scheme is NOT a evel playing field. My mother is 80 and on Pension Credit Income Guarantee and Attendance Allowance, she is currently with N Power and has been since moving into her sheltered accomodation 14 years ago. I tried to sort out this warm home discount for her as she hadn't heard anything and I thought she would be entitled to it. My father paid into a graduated pension scheme many many years ago and because of this she receives savings credit in with her pension because this amount is so small she falls into the minimum income guarantee and gets this as well.

However N Power are NOT accepting pensioners who get any savings credit in their pension onto the scheme until 2013, so she does not qualify. If she was with British Gas she would qualify this year as they are including pensioners who get savings credit and minimum income guarantee. So different criteria from different companies for the same circumstances. I do not think this is right, the same qualifying criteria should apply accross all the suppliers and the government should be doing something about this as it is not fair.

Now the simple thing would be for her to move supplier, however she can't change because of the bizarre tariff she is on. She has Economy 7 and storage heaters, which take a boost in the afternoon which is charged at the economy 7 rate. I can't get this tariff from any other supplier so she is stuck with N Power or overall she ends up paying more because of this stupid afternoon boost.

The whole thing is a complete rip off and the end result is we are all going to end up paying for it in the long run.

Lc3590

Simon7685 wrote: »

However N Power are NOT accepting pensioners who get any savings credit in their pension onto the scheme until 2013, so she does not qualify. If she was with British Gas she would qualify this year as they are including pensioners who get savings credit and minimum income guarantee. So different criteria from different companies for the same circumstances. I do not think this is right, the same qualifying criteria should apply accross all the suppliers and the government should be doing something about this as it is not fair.

Hi,

This scheme was made and introduced by the government, to stop these exact things happening.

Visit the Direct gov site...i'm new so i can't post the link but is on there.

Thanks

flyingjock1

the warm home discount scheme isnt a tariff in its own right. it shouldnt matter what company or tariff you are you should still get it if you have the qualifying criteria. my dad is 76 and with scottish power. is in receipt of pensions credit with savings element. phoned dwp this morning and they said he doesnt qualify for the automatic award from the dwp. however it is very confusing. the government website says its the suppliers who fund and maintain the scheme and other stuff on the net says its the government who fund and maintain it. as elligibility is based on state benefits who is setting the agenda here. if its the governement who are funding it then its crap if there is a number on the amount of customers who can apply and vice versa also crap if the utility companies set a ceiling on how many people they process applications for. the fact that the utility companies have muddied the waters and withdrawn the social tariffs and are interpreting elligibility criteria makes the confusion even worse if thats possible.

Joyful

The government have requested the suppliers to give only to those on Guaranteed pension credit as the Core group. These people do not have to do anything. They have then allowed the providers to have a Broader group where some have different criteria.

As has been said previously BG are including people on savings pension credit for this year. Next year this bracket of people will all get it as the Governments core group will include this.

These payments are being paid from the energy companies not the Government.