Energy Guides

Energy Efficiency at Heart of Government Plan

By Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

Today the Government will launch its much awaited fuel poverty package, worth £1 billion…

Ministers will today announce a package of measures worth £1 billion, aimed at helping households cope with rising energy bills. The plan will focus on energy efficiency in the home and will not impose a direct windfall tax on energy suppliers.

As part of the plan, pensioners and the poorest families will have greater access to free energy and money saving measures, including free loft and cavity wall insulation, draught-proofing, double-glazing and modern central heating systems.

Furthermore, Gordon Brown will announce that discounts and cheaper deals on energy saving measures will also be available to any every household in Britain, regardless of income.

Under the deal hammered out yesterday by ministers and the energy companies after weeks of heated negotiations, the plan will raise increased contributions from energy companies to the Government's carbon emissions reduction target (CERT). The major energy suppliers – British Gas (www.britishgas.co.uk), EDF (www.edfenergy.com), Scottish Power (www.scottishpower.co.uk), Scottish and Southern, E.ON (www.eonenergy.com) and npower (www.npower.com) – have each agreed to increase their contributions to the CERT scheme by 20% (about £560 million) over the next three years.

Gordon Brown insisted yesterday that the measures would give people the chance to reduce their bills every year rather than just provide one-off help for this winter. However, this package of measures has provoked renewed demands for immediate cash help for those in fuel poverty as well as pre-payment meter price caps.

Trade unions, charities, anti-poverty campaigners and around 100 Labour MPs have previously called on the government to impose a windfall tax on the profits of energy suppliers. The Unite union calculated that energy providers have increased annual profits by 538% to more than £3 billion since 2003, and many believe these profits should face a one-off tax, levied by the government to provide aid for those in fuel poverty.

Many will be angered that today’s package involves no tax of this kind, and it is expected that the unions will raise the issue again at the Labour party conference in Manchester this month.

Chris Eagle, Commercial Manager at Energy Choices says: “The Government’s focus on energy efficiency will allow people to save energy and money in the long term, however it is unlikely that these measures will do enough for those suffering in fuel poverty this winter.”

Compare Energy prices and see how much money you can save.
Compare Energy Prices