Wholesale gas prices cause more misery for consumers (21 July 2005)
energywatch, the gas and electricity watchdog, today responded to Powergen’s 11.9% gas and 7.2% electricity price rises.
“Gas producers are forcing energy suppliers to pay even higher prices for gas and it is no surprise that they in turn are passing all the pain straight through to the consumer.”
“Industry has been warning of new rises for some time,” said energywatch Chief Executive Allan Asher, “but the scale of these hikes are a hammer blow for people already struggling to pay their energy bills, not to mention those businesses operating on tight margins who are facing even bigger rises.
It is ironic that the announcement comes on the day that two new reports into fuel poverty are published. While the Government’s Annual Fuel Poverty Report looks back to 2003 and highlights the falling numbers of people in fuel poverty up to that point, a separate The Fall and Rise of Fuel Prices and Fuel Poverty report warns that Government targets to eradicate fuel poverty have been blown off course by energy price rises.
Allan Asher continued: “If the Powergen rise is indicative of what’s to come from other suppliers then the government's fuel poverty targets will not be met. All of the good work being done by Government, companies and others to fight fuel poverty just cannot keep pace with price rises on this scale.”
We need an even greater focus than before on those measures that will help consumers in most need.
Government must push the European Commission review of wholesale gas markets to deliver an open and effective energy market that does not penalise UK energy consumers
We need even greater integration of the myriad grants, schemes and other assistance that is already available for low income consumers
These schemes need to be targeted even more effectively at those who are most vulnerable to high energy prices;
Government could help consumers who are struggling to pay their bills by modernising the Fuel Direct scheme to provide access to simple accounts so more low income consumers can avoid energy debt and benefit from cheaper direct debit tariffs
Energy efficiency must become the 'common sense' way to live our home and business lives, reducing bills and reducing unnecessary energy consumption
Allan Asher concluded: “If this rise is a sign of things to come then Government, industry and consumers need to wake up. We need action to ensure that markets are open, effective and competitive. We need targeted assistance for those on low incomes and we need a culture change that sees the efficient use of energy to become the norm and not the exception.”
Consumers can find ways to cut their bills by visiting the Energy Smart campaign
ends
Notes to editors:
energywatch is the independent gas and electricity consumer watchdog. We provide free, impartial information and advice to energy consumers who are experiencing difficulty in resolving complaints directly with their energy supply companies
Consumers can contact energywatch on the 08459 060708 helpline
Powergen has today also increased its prices for small businesses by 19.7% for gas and 14.7% for electricity.
A fuel-poor household is defined as one that would need to spend more than 10% of its income to maintain warm and healthy conditions within the home. Vulnerable households constitute those with older occupants, families with children or where a householder is disabled or suffers a long-term illness.
The Warm Homes and Energy Conservation Act 2000 committed the government to ending fuel poverty within a 15-year period. The UK Fuel Poverty Strategy (2001) reinforced this commitment and undertook to eliminate fuel poverty for all households by 2016 with a priority to end fuel poverty for vulnerable households by 2010. The DTI figures out today are from the Government’s Third Annual UK Fuel Poverty Strategy Progress Report.
The report, The Fall and Rise of Fuel Prices and Fuel Poverty, written with the support of NEA, energywatch, the Parliamentary Warm Homes Group, Unison and the NRFC, examines the impact of recent price increases on the extent of fuel poverty in England. It also considers prospects for the future if energy prices continue to rise and the implications for the Government’s Fuel Poverty Strategy. A copy of the report is available on the NEA website
Back to Page Top ^
Media Centre
energywatch.org.uk |
