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Big six energy firms agree deal on fuel poverty

11/04/2008

The biggest energy companies in the UK have agreed with the government to spend an additional £225 million over three years to help fuel-poor customers.

The extra investment will help 100,000 people, according to the government.

Scottish and Southern Electricity (SSE) said it will focus on social tariffs, charitable donations, bespoke services and work with community-based programmes.

SSE's social tariff, energyplus care, offers householders a discount of 20 per cent on their energy bills and a variety of other services to help them better manage their energy consumption.

SSE chief executive Ian Marchant said: "Vulnerable customers need the lowest prices available, not simply a tariff labelled 'social', and that principle is at the heart of our new code of practice.

"Many previous claims about spending on 'social' tariffs do not conform to this principle."

But consumer groups say the agreement does not go far enough.

Ann Robinson, director of consumer policy at uSwitch.com, said: "This is welcome, but falls well short of the 500,000 additional households plunged into fuel poverty by the 15 per cent increase to household energy bills this year.

"If it was spread across the whole 4.5 million households in fuel poverty it would amount to less than £18 a year, which is a drop in the ocean when consumers are facing average fuel bills of £1,048 a year."

In this year's Budget, Alistair Darling pledged help for fuel-poor households. As fuel costs soar Mr Darling promised more families would have access to affordable energy.