URGENT STAYWARM ANNOUNCEMENT

MSE_Martin

After hard lobbying last week - StayWarm has backed down. Anyone who has been told they can't continue on the Staywarm tariff because of high usage will now be allowed to stay on it. Though overly high new users won't be allowed on the tariff.

I asked StayWarm why it did this - it's answer was "we were planning to do it anyway, but we decided after lobbying to speed it up"......

THe following is their press release.  REMEMBER this is from them, not me - so always have a pinch of salt about the hype


PRESS RELEASE

Powergen announces special expansion of Staywarm and ends immediate removal of high energy users

Powergen has today announced a special expansion of Staywarm – its unique fixed price electricity and gas service for the over 60s – tailored for the customers it recently took off the scheme for using large amounts of energy.  

At the same time as the announcement of the special expansion, Powergen also revealed that it has ended the immediate removal of high users from the scheme.

Nick Horler, Managing Director of Powergen Retail, said: “We’ve listened to our customers and we’ll now be producing a specially expanded scheme tailored specifically for the needs of those customers who use more energy.

“This is a fair and sensible move, with the expanded service ensuring all Staywarm customers can continue to benefit from the peace of mind offered by a fixed price tariff.

“It was never our intention to upset any of our Powergen Staywarm customers.”

Staywarm is designed to help the UK’s most vulnerable households.  However, Powergen recently identified around 35,000 Staywarm customers who, it believes, are high energy users and were therefore threatening the long-term sustainability of the service for the rest of its customers.

In order to safeguard the remaining 300,000 or so customers using the scheme, around 5,000 higher usage customers were moved onto Powergen’s standard products. These customers will now be invited to return to Staywarm on its current rate until the expanded service specially tailored for their needs is available early in the New Year.

The eligibility criteria for Staywarm remain unchanged.  However, the amount paid by customers on the expanded service will be higher than standard Staywarm prices in order to reflect their higher consumption.  As part of the company’s commitment to helping its most vulnerable customers, high user customers on benefits will be offered a discounted high user price.

“Powergen Staywarm remains unique in the industry and we now have over 350,000 customers,” said Nick Horler.

“However, in a climate of rising energy prices, we must act to guarantee the future of this service for the majority of customers.”

The key eligibility criteria for Powergen Staywarm remain:
•      One member of the household must be over the age of 60;
•      There must be no more than three bedrooms in the property;
•      There must be no more than four residents in the property.

In addition, Powergen will offer all customers it suspects of being high users a free benefits entitlement check. The average unclaimed benefit identified by Powergen through this service is £18.77 per week.

Customers will also be offered advice on lowering their consumption through Powergen’s free energy efficiency helpline.  Powergen Staywarm is also offering all its customers free cavity wall insulation, provided they are a homeowner.

Ends

Notes to editors:
      All letters to high user customers regarding their possible transfer to standard Powergen products halted on Friday, 8th October.  Some letters
Cont’d…
Cont’d…
     may be received until Wednesday, 13th October as they have already been dispatched.  
      Average based on Powergen Staywarm entitlement information given by customers between April and June 2004.

•      Around 5,000 Powergen Staywarm customers have been transferred to a standard Powergen product. Powergen is writing to all Staywarm customers who have been transferred to a standard Powergen product detailing its plans for the expansion of the service.  The letters will invite them to be temporarily transferred back onto Powergen Staywarm’s current rates until the introduction of the new product in the New Year;
•      In order to ensure that no customer is wrongly identified as a high user, Powergen Staywarm is encouraging all customers to provide up to date meter readings;
•      High energy user customers on any of the following benefits will be offered the discounted high user price when it is launched - pension credit, council tax benefit (not including single occupancy reduction), attendance allowance, disability living allowance, war disablement pension (which must include the mobility supplement or constant attendance allowance), housing benefit, working tax credit (for a household income of less than £14,600), industrial injuries disablement benefit (which must include constant attendance allowance), child tax credit (with a household income of less than £14,600), income support and income based job seekers allowance;      
•      Any customer who has queries should call 0800 183 1363.

gatita

Thank you SO much for that update Martin at least hopefully, I will not have to worry for the moment
However I really would like to know their definition of "High User"..........and why don't they make this clear and SAY what it is? ???

I received a letter informing me that I was a high user earlier this month, (Gas 28200K and Electricity 2542k, their figures, )I have never abused their system, and from looking on the forum boards, I see that other people have consumed far more than I have and yet haven't been sent the high usage letter. I find this very puzzling indeed.

Again thank you so much for all your information, all your hard work is so very much appreciated Martin.

loon_2

the reason why this tariff has been recalled is mainly because of people cheating the system. when pgen took over the staywarm scheme there were a lot of customers who had increased consumption over time, but who had not informed staywarm. this meant that certain customers were getting elec/gas cheaper than allowed. for example, some customers who signed up to staywarm, at later dates had swimming pools built, etc and still paid £36 month for unlimited consumption, due to not informing staywarm. since pgen took over they have monitored customers consumption, and those who are using more than their limit are being altered.

this is still a good tariff, as long as you know your actual consumption and do not try to cheat the system.

gatita

Loon,
I understand your view, and agree measures needed to be taken if anyone was found to be abusing the system, BUT I HAVE NOT ABUSED IT, so how do you explain that? My meter readings are in my post above, and they are over what I have consumed. I do wish someone would tell me, I have 'phoned Staywarm, asking them to tell me of the limit......they were unable to do this.

djohn2002uk

What is the point of replying to statements like that from loon. He has shown in other threads that he seems to make up his thoughts as he goes along. I think someone else hit the nail on the head when he said in not so many words "Loon by name, Loon by nature".

djohn2002uk

Now that's off my chest, down to the point.
Gatita is absolutely right, where is the line drawn between acceptible use and heavy use? I doubt we'll ever be told unless someone like Martin is able to push them hard enough. The help desk certainly are unable to tell you anything at all.
My actuall consumption for the last 12 months was:
Electricity: 4821Kwh
Gas: 22313Kwh

Staywarms estimates:
Electricity: 4854Kwh
Gas: 38851Kwh
As you can see, almost double the gas I actually used.

I filled in the form attached to the letter I received informing me of my pending removal, with accurate meter readings and telephoned them and gave the readings over the phone. All this was to no avail because on my transfer to Powergen, they were given the same estimated readings that Staywarm were using, resulting in Powergen requesting monthly payments from me of:
Electricity: £36.00
Gas : £99.50
Working from MY figures, I calculated average monthly figures to be:
Electricity: £29.58
Gas: £29.42
I then agreed to pay them £33.00 on both to keep in the black.
I now await their letter and will then decide if it's worth going back or not, as their current price of £63.40 is not too attractive, and I have absolutely no faith in them being able to calculate my usage accurately, or customer service taking any notice of anything. And to that end it seems it would only be a year before going through this whole saga again.

As a postscript to all this, it seems to me that the people opening the mail and answering the telephones pay no attention to what is said or written. If they did, why would they still transfer their ridiculously high gas estimate to Powergen after receiving my readings and those of a meter reader who appeared (for the first time in 12 months) days after I sent in my figures. I just hope that MD of Staywarm reads this.

gatita

Hello Djohn, Yes I have to agree with you, I think Loon's remark quite insulting as I had put my energy usage in my post, and quite frankly I didn't like the insinuation that I was taking advantage, swimming pool indeed!

All I have to say is that If I have to find £136 per month as quoted to you........... I shall have to freeze as there is NO WAY I can afford anywhere near that, its taking me every effort to find the £40 odd £'s I am paying now. It is so worrying.

MSE_Martin

Can I just confirm that if you have been taken off Staywarm's tariff due to high usage you will now be invited back on it.

Only new customers won't be invited to join.

As for comments, while i'm sure a few people have abused the system. This system was designed pre-Powergen, the aim 'to allow older people to turn up the heat without worrying about the bills'

The fact is it was a socially beneficial tariff with goverment support. Afterwards it was taken over and became a 'commercial proposition'. The original use of 'peace of mind' has long gone, i don't see people that did 'turn up the heat' have abused it in any way.

Best thing i suggest is to move on and discuss the tariff not the ethics.

martin

archie6

I have spoken to Staywarm twice about their revised proposals and it is clear that all they are attempting to do is to ensure that those customers who abuse this excellent product have to pay a surcharge. Since neither I, nor any of my friends who are using Staywarm, have received a letter we assume that we are not abusing the scheme. Only 5,000 of the total 300,000 Staywarm customers where written to.

Whilst I accept that there may be some errors in meter readings which Powergen need to check and correct (and I have sympathy for those who have been affected in this way) I am keen, as a customer who is not seen to be abusing the scheme, to see those who actually are required to pay for their excess consumption. If Staywarm do not apply this policy, the vast majority of us who have not been written to by Powergen will all have our tariffs increased to pay for those who abuse the system. Powergen are not a philanthropic society and should not be expected to run the scheme at a loss.

I have been told that there are some customers who declare their large houses to have 3 bedrooms when they also have an office and a sewing room (actually bedrooms). I suppose that it is too much to ask that Powergen should actually visit the excessive users and assess their status! I am sure that there are also some customers who have heated swimming pools, large heated greenhouses and heated garden offices (sheds!).

It would be a good start if ALL Staywarm customers made sure that they have decent loft and cavity wall insulation, efficient heating systems, low energy bulbs throughout their houses and do not heat rooms that are not in use. And they should not emulate my namesake by filling the bath to the rim with hot water, leaping in and shouting "eureka!".

djohn2002uk

I have spoken to Staywarm twice about their revised proposals and it is clear that all they are attempting to do is to ensure that those customers who abuse this excellent product have to pay a surcharge. Since neither I, nor any of my friends who are using Staywarm, have received a letter we assume that we are not abusing the scheme.

What a self righteous statement!
If you had read the posts carefuly you would have seen that the people complaining were doing so because they do not believe they have abused the system and 2 of the contributers to the threads have been upset by your, and Loons comments. I refrained from answering untill I received a PM today from an obviously upset person and thought it worthwile to do so. Perhaps a little more thought about the phraseology used in future would be a more useful contribution to this thread.

gatita

Archie6
HOW DARE you come on here with your sanctimonious comments! I see you have posted the same insulting post on various forums! You would never even have KNOW about this site if I hadn't posted the link on the other forum you belong to.

I just HOPE Staywarm selects you at random and then lets see how YOU  feel.  I don't think any of the members who have posted on here have abused the Staywarm system. Any normal person would be opposed to abuse of the system. I find it VERY str ange that Staywarm steadfastly REFUSE to say what THEY consider to be 'High Usage'.  I wonder why?
As Powergen took over from Txu, they probably want to do away with the whole scheme.