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uSwitch.com: Ofgem's guidelines on social tariffs

25th July 2008 Print
Ann Robinson, Director of Consumer policy at uSwitch.com, comments on Ofgem's guidelines on social tariffs, which says that social tariffs must equal suppliers' cheapest plans: "We welcome news that Ofgem has moved to ensure that suppliers will offer the most vulnerable members of society the lowest available price for their household energy. This is simple, practical, commonsense.

"This move is vital in the current economic climate. Suppliers have warned of a further 40% increase in household energy prices this year - this would tip an extra 1.6 million into fuel poverty, taking the total from 4.5 million to 6.1 million - a 36% increase. However, a recent independent report, commissioned by Centrica, has said that gas bills alone could rocket to over £1,000 within the next few years. This would plunge an extra 2.4 million into fuel poverty, taking the total to an incredible 6.9 million - a 53% increase. Given the scale of these numbers, the need for a safety net will be greater than ever and it is vital that the social tariff system is made robust enough, wide enough and deep enough to cope.

"It will take some time now for Ofgem and suppliers to start pushing through the recommendations - while this is happening I would urge anyone living on a low income or struggling with their energy bills to call their supplier as a priority to see what help is available. Going forward, the Government, the regulator and the industry must continue to work together to speedily identify those in need and to ensure they get every help possible - in the face of rising prices, this will be the only chance we have of tackling fuel poverty effectively."