Financial Support

Financial support provides vulnerable consumers with direct financial payments from government to help them pay energy bills charged at the same rate as all consumers.

• These can be provided by way of payments from government to vulnerable consumers specifically for energy bills, using mechanisms such as vouchers or rebates.
  
  
• They can be more general financial assistance provided to vulnerable households for living costs, with energy one of the approved eligible costs. There is a risk that government payments are used for purposes other than energy.

Direct financial assistance to the consumer from government involves less distortion of energy markets as it does not involve specific pricing for vulnerable consumers. It will generally mean less administrative burden for energy suppliers.

On occasions, government assistance may be limited to times of the year when energy costs will be higher, such as winter in colder climates.