Will broadband and energy firms help people stuck at home by coronavirus? 

Millions of people are expected to work from home in the coming months in a bid to shelter from the coronavirus pandemic which has swept the country.

While this means many could save on travel costs, it is also the case that households will be increasingly reliant on home broadband, landline and mobile connections – and are likely to use much more energy.

Bills are expected to increase for many with Uswitch revealing the average household will use an extra 15 per cent energy and 20 per cent gas – increasing bills by £155 a year.  

Some suppliers have announced they will be reviewing how they charge their customers in the next few weeks to reflect the demands of the crisis.

Some households will be worried whether they can afford rising bills in the coming weeks

This includes EDF who revealed that its five million customers could benefit from delayed payments or alternative payment arrangements, helping those who will struggle to pay their bills due to the increased prices.

But aside from EDF, what other suppliers will be changing the way they charge their customers – and how will the changes benefit those who need it most? This is Money takes a look.

Energy: 15% rise in home electricity use expected

With an increase of people working from home, energy bills are expected to rise – but how much extra households use will vary. 

Rik Smith, energy expert at Uswitch, said: ‘Assuming a household with medium annual usage is at home for an extra 50 hours per week, between 8am to 6pm, we’ve estimated that they will probably use around 15 per cent more electricity each day and 20 per cent more gas – especially at the moment when we’re only just coming into spring.

‘Across a whole year, this could increase your bill by around £155 if you’re on a poor value Standard Variable Tariff, or about £13 a month. 

‘But don’t forget that warmer lighter days are on their way. So for the period when we’re all expecting to be having to stay at home, we won’t be using as much energy as we have been doing over the winter.

‘There are plenty of ways you can reduce the amount of energy use around your home however, and if you’re concerned about the amount you’re paying, you can compare energy deals and save hundreds of pounds by switching tariff.’

To help those with increased bills, EDF announced it will essentially be freezing customers bills in the future, saying it recognises the impact the coronavirus could have on its customers. 

An EDF spokesperson said: ‘We are prepared to offer affected customers additional support and flexibility.

‘Each case would be looked at on an individual basis, but additional support we could offer may include repayments made over a longer period of time, delay payment for a short period or offer alternative payment arrangements.’

Energy bills are likely to rise for those who are now working from home, due to the coronavirus

Energy bills are likely to rise for those who are now working from home, due to the coronavirus

To see whether other suppliers would follow its lead, This is Money contacted the Big Six suppliers to see what plans they have in place.  

A British Gas spokesperson said: ‘We understand that some customers may be concerned about managing their energy over the coming weeks. 

‘Our priority is to continue to serve and support them as much as possible as the situation evolves.

‘We already take into account the position of some customers in regard to their ability to pay bills – particularly those who are vulnerable – and in these instances, having considered their personal circumstances, we may push back bill due dates or remove debt charges for late payment.

‘While we work under these exceptional circumstances, we’ll of course continue to help those who are struggling, reviewing their situation on an individual basis.’

It added it has ‘processes in place already pre-coronavirus to help financially vulnerable people’ which it reviews on a case by case basis and will continue doing so.

Eon confirmed on its website that it may have to operate with reduced colleagues which could have a knock on effect on its services. 

It said: ‘If this were to happen, it would be right that we focus our efforts on ensuring we take the care of our more vulnerable customers and those with prepayment meters.

‘We are asking all customers, where possible, to register their online account via our app or through our website. We ask that you use this as your primary channel of support followed by our Live Chat and social media sites, leaving our phone lines free for customers who need our help the most.’ 

This is Money has also contacted Npower, Scottish Power and SSE for their plans.  

Could now be the time to switch? 

With energy suppliers and broadband providers seeing a surge in usage from households across the country in the coming months, now could be the time for those in self isolation or working from home to review their bills.

If you feel like you’ve been paying too much or you don’t believe that you’ve been receiving a good service, using a price comparison website could help you save hundreds on your bills each year. 

Using This is Money’s comparison service, which is partnered with Compare the Market, you could see if you could save money on your energy bills by comparing the best deals on the market. 

However, you can also use it to find out if you could be paying less on your broadband, landline and mobile.  

With regards to energy customers, there is particular concern for customers with prepayment meters who usually have to visit a shop in order to top up their supply. 

However, Ofgem recommends that customers contact their supplier immediately to discuss their options, including have a trusted person to help them and take their top up card to the shop.

Alternatively, it may be helpful for consumers to leave the meter box unlocked if they need someone else to top up the meter.

Meanwhile, smart meter customers should be able to top-up remotely, such as by phone, mobile application or online. 

An Ofgem spokesperson said: ‘It is critical that customers remain on supply. We are working closely with government, Citizens Advice and energy suppliers to ensure consumers are protected.

‘We have written to all suppliers to stress the importance of taking early steps to manage risks and support consumers, and have been engaging suppliers at senior levels. 

‘We expect suppliers to take proactive measures to support pre-payment meter customers, including customers in vulnerable circumstances.

‘We understand suppliers are considering a number of measures to support consumers in this situation. 

‘Suppliers should continue to identify vulnerable customers and work to ensure their needs are met.

‘This includes taking a proportionate approach to debt recovery and late payments where appropriate.’ 

The energy price cap, which puts a limit on how much default customers can spend, is still in place with households unable to go over £1,162 as of the beginning of April.  

There is the potential for strain to be put on broadband as extra people using it from home

There is the potential for strain to be put on broadband as extra people using it from home

Broadband: Could bills rise?

The number of people using their home broadband is set to increase massively in the next few months as people are forced to work from home. 

This will increase pressure on home broadband use – could this extra demand result in higher bills in the future? 

BT is one of the largest broadband and landline suppliers in the country, it is to be expected that there will be increased pressure on its services. 

However, it insists that it will be more than capable of dealing with the influx of users.

Howard Watson, BT Group chief technology and information officer, said: ‘We have more than enough capacity in our UK broadband network to handle mass-scale home-working in response to COVID-19.

‘Our network is built to accommodate evening peak network capacity, which is driven by data-heavy things like video streaming and game downloads, for example. 

‘Even if the same heavy data traffic that we see each evening were to run throughout the daytime, there is still enough capacity for work-applications to run simultaneously.’

Meanwhile, Openreach, a division of BT that connects nearly all homes and businesses in the UK to the national broadband and telephone network, has also announced that it has enough infrastructure in place to be able to cope with the added demand.

A spokesperson for Openreach said: ‘The types of applications that people use heavily in the evenings at home – like Facebook, Netflix, Amazon Prime, Sky Go – use more bandwidth than typical working tools like emails, document collaboration software or even voice and video conferencing.

More people will be working from home in the coming weeks and months, using the internet

More people will be working from home in the coming weeks and months, using the internet

‘Should we reach a time when the spread of the virus creates a need to prioritise our services differently, then we will follow Government guidance. We will also consider, as an example, prioritising the repair of existing services over the provision of new ones.’

It added that it has ‘been working since the first reports in January to identify and evaluate the potential risks’ to its business and its customers. 

Virgin Media, another of the countries most popular providers also insists it is ‘well prepared’ for customers to work from home. 

A Virgin Media spokesperson said: ‘A full assessment has been carried out with continuity plans put in place. 

‘Currently we have not seen any significant network traffic spikes but our network is built to withstand evening and weekend peaks when our customers use their broadband most intensively.

‘As such, any usage increase seen in the daytime will be catered for from our existing network capacity. We are continually investing in our network so are ready to make any necessary changes if they are needed.’

Meanwhile, Sky also said it believes it has the capacity to deal with the extra workload it will be facing. 

TalkTalk said customers can ‘rely’ on their broadband ‘during this time of uncertainty’. 

A TalkTalk spokesperson said: ‘We continually optimise our network for both our consumer and business customers and are confident that we have robust measures in place to manage an uplift and the capacity to withstand increases in volume.’ 

For those having trouble paying their bills on time, Ofcom has encouraged them to contact their supplier.  

Lindsey Fussell, Ofcom’s Consumer Group Director, said: ‘If people are having difficulties paying bills because of coronavirus, we’d urge customers to speak to their provider to explain their specific circumstances. 

‘We’re also raising these issues with providers to ensure that customers are being treated sympathetically, during what is a challenging time for many.’ 

Ernest Doku, tech expert at Uswitch, added: ‘All the messaging coming from broadband providers is that they expect to be able to cope with the extra demand on their networks. 

‘The vast majority of broadband deals in the UK include unlimited downloads, so anyone who is on their home network for longer than usual, shouldn’t experience any additional cost. However, if you aren’t sure, get in touch and ask them directly.’

 

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