Fuel poverty help for struggling households

MORE than 11,000 families in Oldham could benefit from plans to force energy companies to offer social tariffs to the most needy.

MPs pushed through the Energy Bill on the last day of Parliament before its dissolution ahead of the general election after agreement from all three main parties.

The bill will force energy companies to offer cheaper tariffs for the most needy.

Fuel poverty — defined as when households spend more than 10 per cent of their income on energy bills — affects 11,356 families across the borough.

At present, the so-called big six energy companies subsidise the bills of those poor and elderly paying a high proportion of their income on gas and electricity under a system of voluntary social tariffs.

But now the energy companies must make at least £300 million available each year from 2013 to fund the social support.

A group of cross-party MPs in Westminster have been lobbying for the change and a review into the big six — British Gas, E.ON, EDF Energy, Npower, Scottish & Southern and ScottishPower — amid fears they were failing to pass on reduction in costs to their customers.

Energy prices shot up in the last two years and despite huge falls on the wholesale energy markets — the price the companies pay — the reduction is not being reflected in household bills.

Michelle Mitchell, charity director of Age Concern and Help the Aged, said: “Proposals in the Energy Bill to make social tariffs mandatory and to be paid automatically to those most in need will go some way towards combating the increasing fuel poverty problem in the UK.

“But to ensure social tariffs are successful, measures to target people in fuel poverty must be improved. As well as using benefits as a proxy for fuel poverty, Ministers should work towards building an effective database to ensure help with energy bills reaches the right people.”

Last year, the Government lunched a £350 million community energy saving programme, targeting up to 90,000 homes in low nicome areas across Great Britain with help to make their houses and flats more energy efficient, helping to lower fuel bills.