Four billion added to fuel poverty rescue bill
August 7, 2008
With energy prices soaring, and the cost of gas and electricity usage spiralling out of control, government officials have been stating that steps are being put into place to help the more vulnerable consumers, such as the elderly and those on low incomes, and that the government plans to eliminate fuel poverty over the next eight years. Fuel poverty is where a household is spending in excess of 10% of its total income on energy bills.
The major energy suppliers have already hikes up energy prices once this year by fairly significant levels, and there is set to be a fresh round of hikes in the autumn, with some predicting that bills could go up by a further 40% or so. Energy companies have blamed the hikes on huge rises in the cost of wholesale energy. The government plans to offer a range of assistance to those facing fuel poverty, and has also set up a Fuel Poverty Advisory Group.
However, officials from this government group have said that if the government wants to stay on target and successfully eliminate fuel poverty as it has said it will then it needs to raise a further four billion pounds over the next eight years. Rows have already erupted between energy suppliers and the government over who will provide various levels of funding to assist with the programme, and this revelation is likely to result in further controversy.
The chairman of the advisory group recently said: ‘We reckon it should pay an extra £500m a year over the next eight years to achieve its target.’ Figures show that around 4.5 million people are now facing fuel poverty as a result of rocketing energy prices.
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