Charis Grants Limited – understanding energy trust funds

Energy Awareness ConferenceChristine Tate - Head of Corporate ResponsibilityBritish Gas25 January 2011

Agenda1. British Gas – About Us2. Our commitment to our vulnerable customers3. Policies to help customers in payment difficulty4. The gateway to specialist help5. Community programmes and partnership working6. Warm Home Discount SchemeSlide 2© British Gas Trading Limited 2011

About Us• We employ over 9000 highly skilled gas engineers recruited and trained to the highestindustry standards• Our opening times are 24 hours /365 days a year• Over 7,000 call centre staff,• UK Number 1 in maintenance & installation of domestic and central heating products• We have a sophisticated parts supply chain available on a 24 hr basis• We are taking the lead in smart metering – already 260,000 meters installed• We invest £30 million per annum on our Engineering Academy, which trains 1,000people a year to become domestic gas engineers, plumbers and electricians – we are agrowing business• We have dedicated help lines for our most vulnerable and those who have paymentdifficultiesSlide 3

About UsGrowing our energy services business, creatingjobs and skillsLargest supplier of energy efficiencyand microgeneration in the UK• 2.5 million homes insulated since 2005• £15m fund to install free solarpanelling to schools• Largest supplier of CESP – deliveringother generator and suppliersobligations• Over 10,000 engineers helpingcustomers save energyInvesting in jobs and skills in theUK• 3,600 new “green” jobs, including gasengineering, smart metering andhome energy experts• Investing £60 million in training overthe next two years in our five trainingacademies• Green Skills academy opened,training 1,300 long-term unemployedSlide 4

Our Commitment to our vulnerable customersOur aim…… is to make life safe, warm and comfortable for ourcustomers but in particular older people, families withyoung children, those with a disability or long-term physicalor mental illness and customers in severe financialdifficulty.Slide 5

We are helping over 1.5 million vulnerablecustomers and those who have payment difficultiesHome Energy CarePriority Service• Offered to our most vulnerable customers, 500,000 Registered• For older, disabled or living with an illness• Free gas safety checks, password security and Braille or largeprint billsExtra help for thosein payment difficultyEssentials• Provided tailored payment plan support to over 400k customers• With our charity partners we have carried out c. 250k benefitchecks; unlocking an average of £800 per customer pa• British Gas Energy Trust, £3.3 m pa since 2004 tohelp those in energy and household debt• A holistic package offering free energy efficiency, debt advice,benefits assessments and Charity Partner referrals• 340k customers receiving a discounted tariff, saving a dual fuelcustomer an average £122 pa• Specialist helpline – 160k calls paSlide 8

Essentials is our flagship social programme, bundling therange of support we offerVulnerable and LowIncomeVulnerableLow IncomeStrategyTop Priority GroupProvision for specialrequirementsMaximising energyefficiency, income andbill managementsupportEligibilityLow Income(HH income

Customers are offered a tailored package dependentupon their needsVulnerable and LowIncomeVulnerableLow IncomePackageEssentials CombinedEssentialsSafe and SoundEssentialsSupportTariff Essentials Standard StandardPackage• HEC services• Dedicated helpline• Extra Care flag• Quality of Lifeassessment• Charity Partner Referrals• ESR assessment• Free insulation andCERT products• Account assessment• Benefits health check• Account assessment• Customised HECservices• Quality of Lifeassessment• Extra Care flag• Dedicated helpline• Charity Partner Referrals• ESR assessment• Free insulation andCERT products• Account assessment• Payment method advice• ESR self assessment• Self benefitsassessment• Free insulation andCERT products• Referral to BGET forgrant assessment• Referral to MoneyAdvice Trust for adviceSlide 10

We are donating £37m in further supportfor our most vulnerable customers• £20m additional British Gas Energy Trust investment• Winter price freeze for Essentials tariffs• £50 payment to 340k Essentials Customers• Additional Essentials benefits:• 156k free insulation installs• 160k calls to specialist advice line (over 100 specialist agents)This is all in addition to our existing £49m social spend commitmentSlide 11

Customer Service and our policiesWe train all our frontline staff to identify and support themost vulnerable through each channelBy using information held on our systems, observations & dialogueField StaffCall CentresExternal Referrals• Sales Representatives• Service Engineers• Meter Readers• Debt and RPU Advisers• Energy Efficiency Experts• Customer Service• Home Energy Care• Energy Debt Experts• Energy Efficiency Team• HHL and partnership referrals• Charity Partners• Citizens Advice Bureau• DWP• Community Programmes• Extra Help UnitA customeris vulnerable iffor reasons ofage, health,disability orsevere financialinsecurity theyare unable tosafe guard theirpersonal welfareor the personalwelfare ofother membersof the householdSlide 12

… helping our vulnerable and customersin payment difficultiesOur agents are empowered- Trained on current economic climate- Focus on ability to pay- Establish vulnerability and offer of help- We don’t want a “one size fits all” approachTake due regard of relevant circumstances- Late paying? Need budgeting help?- Vulnerable? Fuel poor?Focus on making contact with our customers- 8 letters and Text messages- 5 calls- 2 /3 visitsSlide 13

Our policy is clear, we won’t knowingly disconnect avulnerable customer or those in payment difficultyCustomers suffering from severe financial insecurity:• Claiming Means Tested Benefits; and / or• A household income of < £15,600Age:• Households with one or more of the following:– A household member aged over 60– Families with children under the age of 16 yearsLong term illness:• A household member who requires constant carer’s assistance;• A household member who relies on mains powered medical equipment;• Long term/chronic ill health including terminal illness e.g. cancer;• Claiming disability benefits or registered disabled.Customers suffering from other mental health problems:• e.g. Suffering from Alzheimer’s or DementiaSlide 14

Specialist TeamsThe Gateway into our Specialist Teams• Priority Services and Essentials Helpline0800 072 862 / 0800 072 7100• Pre Payment Specialist Helpline0800 294 8604• Home Heat Helpline take c1500 calls PA0800 33 66 99• CAB and Z2K helpline0800 724 614• Debt and Vulnerable helpline08000 725 079Slide 15

Help us to help the most vulnerable anddeal with issues as soon as possible• Name, address and contact details of the customer and 3rd party (if appropriate)• What is the customers preferred contact method• The high level issue• What is the customers financial situation (if relevant to the issue)• What is the customers preferred outcome?• Has there been contact with us previously, if so when?• We will need to speak to the customer and confirm that they give permission, forus to speak to the Charity on their behalf- or we will need a form of authority faxed to us on 02380 824155Specialist CAB and Z2K helpline on 0800 72 4614Slide 16

Community ProgrammesHere to help Community Programme supportingthe most deprived areas in the UK31 CESP Zones underway– Supporting 5,241 homes to save £300 pa on average– Expected spend of £100m• Majority of properties are solid wall concrete houses, poorly insulated and with poor SAP ratings• Open Day Event and regular consultation forums• Our Charity Partners are key part of the ProgrammeCitizen’s Advice Bureau Trial• services Partnership Trial in South Wales regional branchesto promote Here to Help insulation and supportThe Campaign• Training given to all regional and branch Managers• All Receptionists trained and given leaflets• Local Community group presentations• Commission per insulationSlide 17

Here to help Community Programme supportingthe most deprived areas in the UKAge UK and British Gas Benefits Advice Programme (BAP)A UK wide initiative providing support at a local level, by providing in-depthbenefits advice. The programme has been running since 2003 and over60,000 people have been advised through the programme, leading tothe identification of £29 million additional benefits.Advice Agency Network through NEA and British GasAiming to facilitate advice and support for frontline advisors who provide fueldebt advice in their everyday roles. There are now 300 trained Advisorsbenefiting from the Advice Agency Network consisting of training, meetings,newsletter updates and mentoring advice and support.Slide 18

Warm Home DiscountEnergy Suppliers Social Spend willincrease from £150m to £310m by 2014/15Core GroupPension CreditCustomersLegacy Group• Customers identified through data sharing• £130 - £140 by 2014 rebate credited to customers bill• 700k customers in Y1 rising to 1.2m by 2014/15•To be reduced to 0 by 2014/15Broader Group• Eligibility to be determined by Suppliers• 66k customers Y1 rising to 870k by 2014/15• Suppliers to be audited by Of gem on their processesIndustry Initiatives• Spend to reduce from £26m 2009/10 to £20m paThe Warm Home Discount SchemeSlide 19

Warm Home Discount Proposed ModelSlide 20

Summary• BG is helping more than 1.5 million vulnerable customers• We are donating £37m in further support• Getting a better understanding of our customer’s ability to pay• Enhancing our range of outcomes to meet individual circumstances• Using Customer Survey scoring– Listen to feedback and drive changes to our future service provision• Training, training, training and personal development– Making our people even more skilled in what they do• Dedicated help lines for our Partners and to help those who requirespecialist supportSlide 21