Campaigners slam 'disappointing' fuel poverty summit » Housing » 24dash.com

Energy companies today promised to renew their efforts to help tens of thousands of low income households out of fuel poverty but campaigners say the measures don't go far enough.

A summit led by regulator Ofgem agreed on a new action plan including educating customers about switching suppliers and targeted help for the poorest households.

Campaigners immediately said the measures did not go far enough and described the top-level meeting of ministers, suppliers, consumer groups and a European Commission representative as "disappointing".

Ofgem said the "raft of measures" would make sure help was targeted at those in genuine need.

Suppliers had agreed to provide clear information to help agencies guide the elderly and vulnerable consumers to the best deals, and to allow pre-payment meter customers to use switching sites.

An action plan would follow in early May, Ofgem said.

Ofgem chairman Sir John Mogg said: "The actions from this Ofgem summit will help ensure that resources to fight fuel poverty have the highest impact by targeting them precisely on those who need them - the fuel poor and those vulnerable to fuel poverty.

"Low incomes and poor housing are chief causes of fuel poverty and for Government to address. The focus of this summit has been to channel existing resources to the best possible use and, as such, is a sound demonstration of the regulator's role.

"The pace of energy price increases has ended years of falling fuel poverty despite the rein put on it by competition.

"In calling this summit Ofgem has put its duty to help the vulnerable into top gear without compromising the power of the market to help those same consumers.

"At the same time Ofgem is conducting a probe into the retail energy market to ensure it is working effectively for all consumers and vulnerable consumers in particular."

Energy Minister Malcolm Wicks said ministers had asked Ofgem to look at the rates paid by households on pre-payment meters "as a matter of urgency".

"I hope we will see a reduction in the price difference between paying for your fuel through pre-payment meter and paying through your bank account," he told BBC Radio 4's The World at One.

"It cannot be right that the poorest are paying more for their fuel than better off people."

He said that one of the issues the summit had looked at was how Government departments could pass on details of vulnerable households to the energy companies without falling foul of the data protection laws.

"It is a difficult issue. None of us are relaxed about data protection, but today we were discussing details about how we can crack that problem to benefit vulnerable people," he said.

Despite the pressure of rising energy prices, Mr Wicks said that the Government remained committed to its targets of eradicating fuel poverty in vulnerable households by 2010, and in all households by 2016.

If one elderly person or one person with a disability is cold in winter - sometimes too cold to have decent health - then that's intolerable," he said.

"This is not just another Government target, it is something that many of us feel passionate about. Global energy prices are knocking us off course. We have got to get back on course and quick."

The National Housing Federation said the summit fell "far short" of expectations.

Federation chief executive David Orr said: "The summit was a missed opportunity and will leave millions of low income households struggling to pay their bills for the foreseeable future.

"The prepayment meter rip-off disproportionately affects vulnerable people, such as single parents and people with disabilities. And ministers should simply compel the energy companies to equalise prepayment meter tariffs with the standard rate immediately.

"Educating customers is one thing, but this action plan isn't the answer to the desperate situation that many vulnerable people find themselves in, especially as many of those who switch can end up paying even more.

"The proposals are disappointing, the attitude of the energy companies is disappointing, and the approach of the Government is disappointing."

Age Concern's director general Gordon Lishman, who attended the summit, said: "The high profile presence of ministers and energy bosses at today's summit should not fool people into believing that solutions to eradicate fuel poverty are being delivered.

"Whilst the Government's strategy to tackle the problem is unravelling, well over two million older people are living in fuel poverty and growing increasingly anxious about their rapidly rising fuel bills.

"Gordon Brown must prove he is in touch with people's concerns by holding his own urgent summit to get the strategy back on track."

A coalition of campaign groups yesterday released figures which, they said, showed the vast majority of pensioners and lone parents were now living in fuel poverty - defined as households spending more than 10% of their income on fuel costs.

Age Concern, the Child Poverty Action Group and National Energy Action, said that almost one in five households, or 4.5 million people, were now affected.

According to their figures, the average fuel bill for 65 to 74-year-olds has leapt to £1,000, a rise of 15% for a single pensioner.

At the same time the price comparison service uSwitch.com published a survey suggesting 6.8 million households were in debt to their energy suppliers with average arrears of £114.

Help the Aged special adviser Mervyn Kohler said: "Today's summit is a worthy but inadequate response to a problem that is exploding in our faces. It is the most vulnerable who are forced to suffer the daily impact of fuel poverty and older people are especially exposed.

"With news that another hike in energy prices may be on its way, the social schemes of energy providers alone cannot put an end to fuel poverty.

"What's needed is a dynamic and sustainable strategy from Government, focusing on improving the energy efficiency of housing and addressing the long-term need to save on domestic energy consumption.

"Help the Aged has joined forces with Friends of the Earth to seek a judicial review to ensure the Government is held to its legal obligation to eradicate fuel poverty."

Alan Duncan, shadow secretary for business, enterprise and regulatory reform, said: "I'm glad to see that Ofgem is doing what the Government has failed to by taking the lead on the problem of fuel poverty. We need greater leadership from the Government and better co-ordination between Whitehall and the energy firms.

"The Government has failed to prevent the poor and vulnerable being hit with unfair tariffs, and energy efficiency is crucial to this.

"That means bringing in smart meters, council tax rebates and assistance in insulating peoples homes, and most importantly, no more cuts in the Warm Front programme.

"This also illustrates how fatuous it is for Gordon Brown to travel around the world complaining about oil prices. It's what he does at home that's important."