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The government’s response to the Warm Home Discount consultation confirms the initial proposal. Subject to the agreement of Parliament, we will amend the Scheme Regulations in order that suppliers can spend 34% above their non-core spending obligation in 2013/14 and thereby reduce their non-core spending obligation in 2014/15.
This change will lead to more low income vulnerable households receiving £135 rebates off their electricity bills this year than would have been the case otherwise.
This consultation is on a proposal to allow participating energy suppliers to spend more money on the Warm Home Discount this scheme year (2013/14) than they are currently required to spend. We are proposing to change the scheme Regulations to give these suppliers the flexibility of spending up to 34% more this year on their non-core spending than the £100m they have been instructed to spend in total and, by spending more, to reduce their non-core spending obligation for 2014/15.
This simple measure is intended to result in more fuel poor households receiving assistance under the scheme this year. It does not introduce new requirements but allows suppliers to help more low income and vulnerable households while also helping to reduce delivery risks.