Fuel Poverty – the EDF Energy approach

1. Fuel Poverty – the EDF Energy approach • Valentine Mulholland • 28th October 2008

2. EDF Energy • Part of the EDF Group • One of the UK’s largest energy companies including: • Electricity generation. • Electricity distribution to over 20 million people. • Electricity and gas supply to over 5 million customers, both domestic and industrial and commercial • Around 1.3 Million gas and electricity customer accounts in London. • A strong commitment to both corporate social responsibility and tackling climate change: • June 2007 – EDF Energy Climate Commitments • Early 2008 – EDF Energy Social Commitments

3. Energy Assist social tariff • Industry first since April 2006 and offers customers on prepayment, standard credit or direct debit prices a 15% discount. • ‘Our Social Commitments’ committed: • To extend Energy Assist until March 2009. • To offering a social tariff until at least 2012 – another industry first. • Currently have over 110,000 customer accounts on the tariff. • Also offer the customer a free benefit entitlement check and energy efficiency advice. • Eligibility - existing EDF Energy customer and: • In receipt of income support or • Pension credit or • Evidence that in fuel poverty. • 4 suppliers have followed our example.

4. EDF Energy Trust • Established by EDF Energy in October 2003 to provide advice and direct support for customers struggling to pay energy and other bills. • First energy trust in the UK • Outside EDF Energy and managed by an independent Board of Trustees – 100% funded by EDF Energy donations • Have donated over £8.5 Million, and Trust has made 10,000 individual awards • Awards to : • Individuals with energy or other household debt • Organisations who offer education, support and advice on debt and household budgeting • Sustainable - over 70% of people who receive an award are still debt free after 1 year. • 4 other suppliers have followed our example.

5. Supporting prepayment customers • Whilst most prepayment customers are not fuel poor, they are most likely to be on low incomes. • Suppliers charge those customers who choose this method of payment more to cover the additional costs of managing this payment method • But in 2005, EDF Energy was the first supplier to align the cost of our electricity prepayment tariff to our standard tariff • Even in gas, we keep the price difference as low as possible

6. Other voluntary initiatives to support fuel poor customers • London Warm Zone • Partnership with 18 Local Authorities extending across London • EDF Energy provides: • Core funding C£250,000 a year. • Seconded Project Manager • CERT funding to deliver insulation element • Safe, Warm and Well campaign • Partnership with WRVS • Partnership with other voluntary organisations including: • Citizen’s Advice Bureau • National Energy Action – sponsoring and joint work

7. Ofgem’s ‘review of suppliers’ initiatives - August 2007

8. The supplier ‘voluntary commitment’ EDF Energy position – we would support a mandatory social tariff. Government reluctant to legislate. Discussion with Treasury and BERR have led to a voluntary social commitment agreed April 2008. Ofgem framework for eligible spend and monitoring: Social tariffs and rebates Warm Zones Partnerships Trust Funds Energy efficiency over and above CERT

9. www.edfenergy.com/toolkit/index/html