DECC seeks to extend Warm Home Discount scheme

The UK Government is proposing to extend a scheme that gives fuel poor householders a one-off discount on their electricity bills. Currently in its fourth year, the Warm Home Discount […]

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By Priyanka Shrestha

The UK Government is proposing to extend a scheme that gives fuel poor householders a one-off discount on their electricity bills.

Currently in its fourth year, the Warm Home Discount (WHD) was launched in a bid to reduce fuel poverty and the impact of rising energy prices on low income and vulnerable households.

Under the scheme, suppliers with more than 250,000 domestic customer accounts are obliged to reduce electricity bills for eligible customers by £140.

While DECC does not propose to make significant changes to the scheme for the one-year extension, it is inviting views on whether there are barriers to switching and how it can be overcome and if more low income working families should receive help.

It is also proposing to introduce a cap on the proportion of spending which can be used for debt assistance.

DECC is inviting views from energy suppliers and organisations that represent low income and vulnerable households, those interested in fuel poverty policies as well as individuals who are affected.

The consultation is open until November 13th 2014.

Around two million homes have so far benefited through the scheme and participating energy suppliers will have spent more than £1.1 billion by the end of the current phase in March 2015.