Energy suppliers must help residents struggling to pay their bills this winter rather than “thinking only of their own interests," a councillor has demanded.
Glasgow Labour’s deputy leader, councillor Soryia Siddique, said she has had months of approaches from constituents who are trying to cope with soaring energy prices.
She said: “They often complained that their energy supplier was asking them to pay amounts they simply couldn’t afford."
She pointed out that energy firms are required by Ofgem to “put customers in debt on realistic and sustainable repayment plans”, including setting repayment rates based on ability to pay.
Councillor Siddique wrote to Jonathan Brearley, the Ofgem chief executive, last month emphasising how it is “more important than ever that energy suppliers show the flexibility needed to help vulnerable customers manage the payment of the escalating costs of energy.”
She asked Mr Brearley about energy firms’ compliance with the supply licence.
A recent review of how energy suppliers help customers in payment difficulties, by Ofgem, found the majority of firms have minor to moderate issues while three have ‘severe’ weaknesses.
Two suppliers, including Glasgow-based Scottish Power, were issued provisional orders, requiring urgent action. Ofgem warned the supplier that it had to meet its obligations to protect vulnerable customers.
Councillor Siddique urged firms to “treat customers who are struggling to pay their bills in a sympathetic manner so that these consumers can manage their financial difficulties”.
“We must help people keep their homes warm this winter,” she said.
“We must also help them to manage the various other financial pressures they face.
“We can’t have energy companies, thinking only of their own interests, grabbing all the money these people need for other essentials.”
She said companies have a “moral imperative” to “step up to the mark and help more” and suggested they should offer some of their profits to advice services, such as Citizens Advice, which are helping struggling consumers.
Vincent Chudy, manager of Glasgow Central Citizens Advice Bureau, said the service anticipates “a deluge as winter approaches and develops” as the worst of the crisis has yet to hit.
He encouraged clients to check all the help available.
He said to support customers, the CAB would “contact the energy supplier and try to negotiate a reduction of any arrears and then negotiate a repayment plan for any residual debt.”
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