Fuel bills under the spotlight

By Paul Lewis

Alphabet P People who cannot afford their fuel bills should be given discounts and help with energy-saving measures.
Gas burnerGas burner

Energywatch, the gas and electricity watchdog, wants the Government to force energy companies to introduce what it calls "social tariffs" for people in "fuel poverty" - those who spend more than 10 per cent of their income on energy bills, and the Government has committed itself to take all vulnerable households - including all households with anyone over 60 - out of fuel poverty by 2010 and all households by 2016.

But with gas bills up 94% and electricity up 60% from 2003 to 2006, that target is looking increasingly elusive.

At present, some energy suppliers do offer reduced prices to some low-income customers, but provision is patchy. People with pre-payment meters can pay £100 a year more for their fuel than those who pay by direct debit.

Energywatch wants the Government to compel energy companies to provide three things: a cheaper tariff, help with insulation and other improvements to reduce energy use, and benefit entitlement checks to maximise income.

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