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Government provide energy help for the poor
Tuesday 05 August, 2008
By becca.talbot@consumerchoices.co.uk
British ministers are considering a number of green energy measures, including a £2.75bn home insulation programme funded by energy companies, to protect the country’s poorest from the impact of gas and electricity price increases, it was confirmed yesterday.
In a bid to tackle the rising fuel poverty rates in Britain, the Government is looking into a scheme, known as the carbon emissions reduction target, which will be funded by the profits from energy suppliers, and aims to help those most affected by gas and electricity price hikes.
The three-year programme will encourage households to be more aware of their carbon emissions, and will fund energy efficiency measures, such as cavity wall and loft insulation in the homes of people with low incomes, and the elderly. It is expected to raise over £2bn from the energy companies during the three years, but the scheme could be front-loaded, so that more is spent this year and next.
| “Energy companies could bring forward their spending in view of their huge profits.” |
Under the scheme, energy suppliers will be set carbon savings targets, and are required to direct at least 40% of their savings to a priority group of customers.
Although the scheme was planned to run over a three year course, with the money spent equally each year, ministers argued yesterday that the energy companies could bring forward their spending in view of their huge profits.
Last week Centrica, owner of British Gas announced a 35% price increase. The average British household now faces annual gas and electricity bills of more than £1,200. This has resulted in a tremendous rise in those deemed as fuel-poor, anyone that spends more than 10% of their income on gas or electricity bills.
Ministers are also looking at restoring cuts in the Warm Front programme, a package of measures worth up to £2,700 for vulnerable homeowners or for those on benefits. Funding for the programme was cut by 16% earlier this year, but Gordon Brown is now hinting this may be upped.
Chris Eagle of EnergyChoices.co.uk says: “Pressuring energy suppliers to part with their profits now to fund the scheme seems only fair after the huge price hikes they’ve left their customers facing.”
Chris continues: “It will help ensure those most vulnerable can save money through home energy efficiency, helping to combat the increased cost of heating.”
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