Ofgem-led summit pinpoints help on fuel poverty

A summit led by energy regulator Ofgem has agreed a package of measures to improve the targeting of help on customers facing increasing hardship created by the rising cost of energy.

Measures to help combat the rise in fuel poverty - where consumers spend more than a tenth of their income on energy - were discussed at the summit which was chaired by Ofgem Chairman Sir John Mogg. Those measures will be incorporated into an action programme in early May.

The summit was attended by government ministers, chief executives of the suppliers, consumer and voluntary agencies as well as a senior representative from the European Commission.

Ofgem presented to the summit its analysis of the differences in supplier prices across different payment methods. The analysis emerged from Ofgem's ongoing monitoring of the market. The regulator confirmed that it was looking at whether further measures are necessary to address the largest premiums. A region-by-region switching advice campaign will follow.

Other features of the action programme will include: a raft of measures to make sure help is pinpointed on people who genuinely need it;

supplier commitment to provide clear information for trusted advice agencies to enable them to guide the elderly and other vulnerable consumers to the best offerings; and switching for pre payment meter customers made available through switching sites.

Sir John 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 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."

The action programme will reflect the fundamental agreements reached by the summit. It will be followed up with a detailed programme once specific elements have been finalised.