Taking steps to combat fuel poverty
FUEL poverty is influenced by a range of factors. The most prominent are fuel prices, level of household income and the energy efficiency of a dwelling.
The Government is working hard to tackle this problem, and our strategy for alleviating fuel poverty is centred around:
Programmes to improve household energy efficiency measures and efficient heating systems.
Maintaining a competitive energy market, ensuring the market works for the less well off.
Continuing action to tackle poverty and increase incomes through the take-up of all benefits.
The Government is also working with energy companies.
Through the co-operation of these firms, the amount of money being spent on social programmes to help the poorest heat their homes is now set to treble. This could help up to 100,000 households. The current level of funding will increase from 56m a year to 150m a year.
Of course, we know that there is more to do. The combination of funding for the Government's Warm Front scheme, of just over 800m for the 2008-11 period, and the focus on low income and elderly consumers through the priority group obligation in the carbon emissions reduction target mean that spending on energy efficiency and other measures in low income, elderly and disabled households is expected to rise by 680m to about 2.3bn.
The Government has asked Ofgem to investigate the difference between the cost of energy for those who use pre-payment meters and other forms of payment.
If the research reveals that customers using pre-payment meters are being treated unfairly, the Government will be prepared to legislate to reduce unfair differentials if the companies cannot find a solution.
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Thursday 24 May 2012
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