May 17, 2020

Utilities offer programs for energy bills

4 min
Electric bills
[email protected] Click here for the latest issue of Energy Digital magazine By Don Amerman Help is available for low-income households struggling t...

Click here for the latest issue of Energy Digital magazine 

By Don Amerman

Help is available for low-income households struggling to stay warm during this winter's record cold.

However those in need should act quickly because much of the funding set aside to help them pay energy bills is available on a first-come, first-served basis.

Perhaps the largest single source of aid to those having difficulty paying their home energy bills – for both heating and cooling – is a federal program called the Low Income Home Energy Assistance Program, or LIHEAP.

Funds budgeted at the federal level are distributed to the individual states and the District of Columbia according to a formula that takes into account each state's weather and the size of its low-income population.

Less assistance available

Even as Americans experience a sharp increase in the number of extreme weather events year-round, sequestration and other initiatives to cut back overall federal spending have conspired to reduce the amount of LIHEAP funds available for distribution to the states.

According to data provided by the Campaign for Home Energy Assistance, federal funding for the LIHEAP program has declined fairly sharply in recent years after hitting highs of $5.1 billion in fiscal years 2009 and 2010.

For fiscal year 2011, Congress budgeted $4.7 billion, and in fiscal year 2013 the allocation was reduced to less than $3.5 billion. The LIHEAP budget for fiscal year 2014 is estimated to run about $3.2 billion.

Rules vary state to state

Because the procedures for – and the regulations governing – the distribution of LIHEAP funds vary from one state to another, there is no one-size-fits-all policy nationwide.

Eligibility requirements vary from state to state but generally require applicants to prove that household income is no more than 150 percent of the current federal poverty level, which in late 2013 was $22,113 for a family of four.

If you or a family member is on a fixed income, out of work, involved in debt settlementnegotiations, or otherwise unable to meet your home energy costs, you can find out more about your state's eligibility requirements through the state agency that administers the LIHEAP.

Searching the Internet by "LIHEAP" and your state's name should bring up links to relevant websites. In addition to the distribution of LIHEAP funds, many states have programs of their own.

California program

In California, for example, the low-income energy assistance program is administered by the state's Department of Community Services & Development, or CSD. At the agency's website, you will find detailed information about the regulations governing LIHEAP assistance in California, as well as links to information about other low-income utility programs and how to make your home more energy efficient through weatherization.

Among California's other state initiatives to help defray home energy costs for those in need are California Alternate Rates for Energy, or CARE, which provides a 20 percent discount on utility bills, and the Family Electric Rate Assistance Program, or FERA, which bills some electric usage at lower rates. CARE and FERA are administered through the state's public utilities.

In Ohio, the state's Development Services Agency administers the LIHEAP program.

Its website also provides information about additional initiatives that are available to help the needy pay for the energy they require to heat and cool their homes. Such programs include the Percentage of Income Payment Plan Plus, Electric Partnership Program, and the Home Weatherization Assistance Program.

Utility programs

Many utility companies have programs of their own designed to help low-income households pay for the energy they need to heat or cool their homes. In some cases, these programs are funded in part by a portion of the LIHEAP funds received by the state in which the utility operates. Other programs are financed from other sources.

Florida Power & Light serves 4.6 million customers throughout the Sunshine State. In addition to LIHEAP-funded assistance to its customers, FPL has a couple of other programs to which those in need might turn.

Funded by contributions from employees, shareholders, and other customers, the utility's Care to Share program provides annual grants of up to $500 to low-income customers who need help paying their energy bills. Another program, FPL Assist, refers customers in need to social service agencies that may be able to help customers pay their bills.

Assistance from ComEd

Commonwealth Edison, which serves nearly 4 million customers in Illinois, has programs to help low-income households and nonprofit organizations pay their energy bills.

ComEd's CHAMP program is designed to assist activated and deployed members of the U.S. Armed Forces, National Guard, Reserves, and disabled veterans in paying their energy bills. Among the program's benefits are bill payment assistance of up to $1,000 (while funds are available), deferred payment plans, extended due dates, late charge cancellations, deposit reductions and/or refunds, and budget payment plans.

If you find yourself financially strapped and unable to pay mounting home energy bills, the federal, state, and utility programs outlined here may be able to help you through this difficult period.

However, the need is great and the funds are limited, so act quickly to get the help you need.

About the author: Don Amerman is a freelance author who writes extensively about a wide array of business and personal finance topics.

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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