Generally, approaches to vulnerable consumers have focused on long-term or permanent indicators of disadvantage. Periods of vulnerability can, however on occasions, be temporal. Examples may include:
- A natural disaster, a period of temporary unemployment, a temporary illness or a period impacted by a major change in government policy, such as the implementation of a carbon price.
- The COVID-19 lockdowns imposed by governments around the world to reduce the transmission of the virus, are another example where energy support measures of a temporary nature have been introduced. These have acknowledged both the impact of the lockdowns on economic activity, and the increased use of energy in the home because of stay-at-home orders.
In general, support measures for consumers experiencing temporary vulnerability should have the following features:
- They should be capable of fast implementation.
- Eligibility should be related to the circumstances in which they have been introduced.
- Conditions that led to their introduction need to be closely monitored.
- They should be designed for easy and fast withdrawal once temporary vulnerability has passed.
The lifespan of temporary support measures needs to be linked to the circumstances in which they have been introduced. If measures that are meant to deal with temporary vulnerability become permanent, they can become costly and undermine the targeted nature of effective long-term vulnerable consumer strategies.
