Energy News

Energy Suppliers to Receive Government Shock

Wednesday 03 June, 2008

By Dan Drage

The government has unveiled plans to shock energy suppliers into helping the fuel poor.

The government has elected to spell out the effects of rising fuel bills to energy suppliers, as data on low income households will be shared with energy companies to help people meet their fuel debts.

This data will include income, tax, savings and national insurance figures.

The scheme, prompted by a report from energy regulator Ofgem, will allow grants and discounts from the energy suppliers to be evenly distributed amongst the elderly and most vulnerable members of society.

Campaigners, including Age Concern and the Citizen’s Advice Bureau (CAB), have vocalised a feeling of discomfort over the sharing of this data. Gordon Lishman, Age Concern Director General, had the following to say:

'We feel strongly that the severe pressure of rapidly rising energy prices justifies this kind of action, providing the data is handled by a trusted third party and people are fully informed about the scheme and given the option to opt out.'

Teresa Perchard of the CAB was more scathing in her assessment:

‘We will be watching very carefully to see it is used wisely and people's personal privacy is not abused.’

According to government estimates, 2.5 million households are in fuel poverty. Fuel poverty is defined as when more than 10% of household income is spent on fuel bills.

Energy watchdog Energywatch argues this figure is closer to the four million mark.

Chris Eagle, Commercial Manager at Energy Choices, hopes energy suppliers will finally take notice:

‘The term ‘fuel poverty’ seems to be lost on energy suppliers and the government. Energywatch estimates suggest twice as many people are living in fuel poverty than the government believe’

He continues:

‘Is the government directing energy suppliers simply an example of the blind leading the blind?’

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