EnergyInsights.net

Fuel poverty rises and more insulation on the way

21-10-2009 8:53 pm

Fuel poverty continues to rise, according to government figures released today. DECC published figures that show that up to 4.6 million homes in England could be in fuel poverty in 2009, this is up from 2.4 million in 2006. Fuel poverty is defined as spending more than 10% of household income on fuel. However, energy saving measures for the poorest are to be stepped up, with British Gas implementing street by street insulation work in low income neighbourhoods.

Fuel poverty rises and more insulation on the way

DECC say they are increasing obligations on energy companies to help the most vulnerable and plan to set a “Super” Priority Group obligation for the most vulnerable – such as poorer, older pensioners - as part of the extension to 2012 of the Carbon Emissions Reduction Target (CERT).

Up to 90,000 homes in England, Scotland and Wales will receive help to get whole house energy makeovers to save up to Ł300 per year on energy bills. British Gas will initially carry out work on streets in Dundee, Glasgow, Swansea, Preston in Lancashire, Knowsley in Merseyside, Birmingham, Walsall, Blacon in Cheshire and the London Boroughs of Southwark and Haringey, as part of the Community Energy Saving Programme (CESP).

Energy companies, in partnership with local authorities, will deliver around Ł350m of energy efficiency measures under CESP over the next three years.

Government also say they will act on prices for the most vulnerable. The social tariffs offered by the energy companies will be put on a statutory footing.

Tougher regulation to make sure all consumers get a fair deal pricewise is also promised. Ofgem will receive new powers to police abuses in the market, and energy companies will be urged to pass on wholesale price reductions as far and as quickly as possible

Energy and Climate Change Minister David Kidney said: “We recognise there is still a mountain to climb on fuel poverty because of significant increases in fuel bills and that’s why we’re determined to redouble our efforts. We will build on the measures we’ve already brought forward, including the Ł20billion on benefits and programmes, without which 800,000 more people would have found themselves in fuel poverty.

“We plan to legislate to give new powers to the regulator to take action, make social tariffs mandatory not optional, and are planning new measures on energy efficiency targeted at the poorest.”

CESP will promote a “whole hous" approach, and will be delivered through the development of community-based partnerships involving Local Authorities (LAs) along with energy suppliers and electricity generators, via a house-by-house, street-by-street approach. Partnership working will allow CESP to be implemented in a way that is best suited to individual areas and coordinated with existing initiatives. Up to 100 schemes will be funded benefiting around 90,000 homes across Great Britain, and delivering a saving of nearly 2.9m tonnes of CO2 emissions.