Energy Bill must pave way for affordable energy tariffs

As rising energy prices squeeze household budgets and swell the numbers who can’t afford to keep their home warm, campaign groups today urge the government to introduce a clause in this week’s Energy Bill paving the way for low-cost energy for vulnerable households.

The National Consumer Council (NCC) and National Energy Action (NEA) want energy companies to be obliged to offer well-publicised, low cost ‘social tariffs’ to vulnerable customers, such as low-income families and elderly people. Many of the current company initiatives are inadequate – often rationed and applied inconsistently. While energy companies should take the lead on raising standards for social tariffs, NCC and NEA argue that reserve powers are needed in the Bill to ensure that companies deliver on their responsibilities.

Jenny Saunders, NEA’s acting chief executive, explains: ‘Energy prices are on the upward march again and the number of people who can’t afford to heat their homes is set to soar beyond 4 million. This means the government’s target to end fuel poverty for the most vulnerable by 2010 looks increasingly challenging. Adequate standards for social tariffs would be a vital safety net for people most at risk of fuel poverty’.

NCC acting chief executive, Philip Cullum, says: ‘There needs to be a more consistent and effective set of social tariffs, making sure that vulnerable people are shielded from the worst effects of rising energy prices. Energy companies should take responsibility for this - but this week’s Energy Bill provides the perfect opportunity to ensure that government is able to act if the industry fails to do so.’