Helping low income customers through energy utility trusts - Does it work?

Panel: Panel 1. Strategies and integrated policies

Author:
Eoin Lees, Eoin Lees Energy & Chair EDF Energy Trust

Abstract

The EDF Energy Trust was the first independent charitable trust to be established in the UK by an energy supplier becoming operational in December 2003. The Trust uses funds from EDF Energy to help their customers who have difficulty in paying their energy bills.

In the initial phase of operation, EDF Energy Trust will pay off the outstanding energy debts and ensure that the householder is offered advice on budgeting and planning their finances to avoid debt in the future. The intention is to give those trapped in a cycle of debt "a fresh start". In the first year, 281 awards were made with a total value of over 240 000 Euro - the average grant for energy debt was 750 Euro. Additionally, we have awarded 33 grants totalling 840 000 Euro to a variety of organisations to help further the Trust's objective particularly focussing on increasing the availability of money advice as this has proven to be in short supply in many areas due to the unprecedented levels of indebtedness currently in the UK.

We now intend to roll out the successful pilots, focussing on those areas which are identified as being most in debt. By the time of the ECEEE Summer Study, we should be able to demonstrate a marked increase in applications and practical examples of households who have been enabled to make a fresh start. By then, we should be ensuring that all applicants are being offered free personalised energy efficiency advice and in the final stages of planning, where appropriate, to facilitate the installation of energy efficiency measures in the homes of applicants to the Trust. The Trust will effectively act as a referral mechanism to existing energy efficiency mechanisms which are either underutilised or frequently unknown to many householders.