Fuel Direct: supplier contravention of licensing conditions
Letter from the Secretary of State for Work and Pensions to Ofgem about energy suppliers' response to changes to ongoing energy consumption payments from benefits
Applies to England, Scotland and Wales
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On 1 April 2022, DWP made a temporary change to the policy of allowing ongoing energy consumption payments directly from certain benefits. This scheme is known a ‘Fuel Direct’. The change ensured only claimants could create new arrangements to pay energy bills directly from their benefit, and only claimants could increase the level of existing payments.
Some suppliers have stated it is no longer commercially viable to offer Fuel Direct.
The Secretary of State for Work and Pensions has written to the Chief Executive of Ofgem to ask for support in ensuring DWP claimants will continue to be supported during these challenging times and in ensuring energy suppliers fulfil their statutory requirements.