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Energy and the costs involved



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Published Date: 08 May 2008
Energy costs have spiralled in recent times. We are all of us affected when energy prices rise as that's the one thing – besides food and shelter – that we can't do without.
But the poorest pensioners, the disabled and families on low incomes are particularly hard hit.

All energy companies have schemes that help poorer households with their fuel bills but these are not always well advertised and there is a limited amount of help available.

I raised this issue through Parliament earlier in the year and that's why I'm really pleased that the Government have now taken energy companies to task and got them to agree to divert some of their profits into increasing the amount of help they give to the most vulnerable in our community. As a result of Government pressure they have agreed to spend an extra £225m over the next three years on top of the £56 m they currently spend. Good news indeed. It's right that these companies, rather than the taxpayer, should be helping poorer customers.

The Government are doing their bit too in increasing the winter fuel payment and in providing an additional one-off payment of £100 to over-80s households and £50 to over-60s households in winter 2008-09.

I'm also concerned that people who pay their electricity by key meter pay more than those who are able to pay by direct debit or other means. That cost can amount to as much as £144 extra a year – to my mind, it constitutes a tax on poverty. The Government also recognises the growing concern about the different amounts paid by those who use "key meters" and those who are able to pay by direct debit. Key meters can cost around £55 more a year Households that use prepayment meters typically pay around £55 more a year for their energy than customers paying by standard credit and £144 more than those who pay by direct debit. Ofgem is investigating this and, should its investigation reveal that the customers using pre-payment meters are being treated unfairly, we said we would be prepared to legislate to reduce unfair differentials, if companies do not provide the solution.

The reasons are many – sadly most of them outside our control. Price changes are commercial decisions for the companies involved and global demand is pushing up energy costs worldwide. That's why the forthcoming Energy Bill will be putting measures in place to ensure that we have secure supplies for our future.

If you or someone you know is on benefit or Pension Credit and struggling to pay energy bills, and you would like to know how to go about accessing this help then please contact my office on 460070 and we will point you in the right direction. Or contact your energy company direct, they should be able to advise.

The full article contains 479 words and appears in n/a newspaper.
Page 1 of 1

  • Last Updated: 08 May 2008 7:38 AM
  • Source: n/a
  • Location: Hastings
 
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bart simpson,

08/05/2008 08:03:30
I'm off to work now, am qualified but am in receipt of the minimum wage. The new labour government have betrayed hard working families. They continue to be a mouth piece for the rich.
Roll on General election and then the people can vote new labour and Foster out.
People are waking up to Foster and cronies lies and spin.
His cll's continue to toe the party line and that is why Independent representatives will be fairer and Independent for the people.
2

Darryl,

Hastings 08/05/2008 08:19:46

I’m glad that Michael Foster is concerned about energy costs. You’ll definitely need help if you’re one of the government’s 10% tax band walking wounded !

He claims the government are doing their bit. Not so. The government makes more money out of energy than the energy companies. Every time the energy prices go up , so proportionately does the tax on domestic energy. So the government’s raking it in !

Do not be fooled by Mr Foster’s rhetoric ; if the government really cared about its poorer populace it would cap the energy tax rises. How about that Michael ? Or are the government worried that because of their grossly incompetent policies they need to squeeze every penny from taxpayers ?

Mr Foster says the taxpayer will not pay for the meter changes ..well, not directly…the companies have stated that they will just pass on any cost to anyone who does’nt have a meter. Ring a Ring a Roses !

There are indeed many reasons for energy price rises ie. world markets ..which I accept.

However this useless government has made things worse. Gordon Brown put up the tax on North Sea oil from 20% to 40% ; and guess what …revenue fell and companies pulled out of projects. Well done Gordon ..another stroke of genius !

The government also allowed European companies to take over British ones ; yet our companies were not allowed to take over any in Europe. This has now lessened competition ….and it is well documented that this was a factor in the price rises of last year.

This government have now been in 11years. They are only now beginning to address energy issues. What have they been doing for the last 11 years ?

I would recommend that you ring Michael’s office on 460070 and demand Mr Foster’s resignation so we can have some reprieve from the incompetence and the lack of caring from this Labour Government !
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logicus,

local 08/05/2008 09:51:11
any body can raise the issue, but what is being done about it, taking "energy companies to task" is a bit like shutting the door after the horse has bolted....these vast profits have been made from "poorer households " made even poorer by a government to keen on giving with one hand, then taking it away with the other...perhaps he ought to look into vouchers for electricity and gas that can be given to subsidise the higher cost those who can't get a bank account...or had there account frozen as a result from benefits being paid in late causing lots of service charges...making the banks and shareholders richer..
4

,

08/05/2008 14:40:18
Comment Reported Unsuitable By User
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Darryl,

Hastings 08/05/2008 15:26:19

Car taxes :

Of course another drain on the poorer car owning community is petrol.

Out of ever litre of petrol at 110.65 per litre the government takes some 66.83 pence per litre. The higher the petrol price goes ..the more money they make ? Where is it going ? Ask the government who make more out of petrol than the oil companies.

Out of every 121.21 pence per litre of diesel the government takes some 68.40 in duty and VAT. Again ..the higher the price the more money they get !
Diesel is particularily important to the transport industry ....and is one of the factors in supermarkets hiking their prices.

Its about time the government stopped squandering our money and did something to help the less fortunate in society. With the high mileage expenses of MP's I doubt whether it would rouse a flicker of interest ....not their problem of course !

6

parker,

08/05/2008 15:27:49
Interesting article in today's Independent newspaper.
It claims that the rich are getting richer and the poor,are becoming poorer under the New Labour Government.
Hastings is full of highly skilled and qualified workers who are still in receipt of low wages, in compaison with other areas.
Considering the deprivation issues that this Town faces, the community charge bills are proportionally higher than they should be.
The public expect better than the incompetant New Labour Government. The New Labour Government and Foster and cronies have demonstrated that they are both fiscally and emotionally bankrupt.
7

Darryl,

Hastings 08/05/2008 15:29:46

Car taxes :

Of course another drain on the poorer car owning community is petrol.

Out of ever litre of petrol at 110.65 per litre the government takes some 66.83 pence per litre. The higher the petrol price goes ..the more money they make ? Where is it going ? Ask the government who make more out of petrol than the oil companies.

Out of every 121.21 pence per litre of diesel the government takes some 68.40 in duty and VAT. Again ..the higher the price the more money they get !
Diesel is particularily important to the transport industry ....and is one of the factors in supermarkets hiking their prices.

Its about time the government stopped squandering our money and did something to help the less fortunate in society. With the high mileage expenses of MP's I doubt whether it would rouse a flicker of interest ....not their problem of course !

8

Darryl,

Hastings 08/05/2008 15:29:46

Car taxes :

Of course another drain on the poorer car owning community is petrol.

Out of ever litre of petrol at 110.65 per litre the government takes some 66.83 pence per litre. The higher the petrol price goes ..the more money they make ? Where is it going ? Ask the government who make more out of petrol than the oil companies.

Out of every 121.21 pence per litre of diesel the government takes some 68.40 in duty and VAT. Again ..the higher the price the more money they get !
Diesel is particularily important to the transport industry ....and is one of the factors in supermarkets hiking their prices.

Its about time the government stopped squandering our money and did something to help the less fortunate in society. With the high mileage expenses of MP's I doubt whether it would rouse a flicker of interest ....not their problem of course !

9

Darryl,

Hastings 08/05/2008 15:33:14

Yes ..it is true , Parker , that under the 11 years of Hard Labour administration ....the gap between rich and poor has grown significantly ; and is continuing to do so !

Pity the poor misguided socialists who actually think that this government is working for them !
10

parker,

08/05/2008 15:42:32
Perhaps if New Labour spent more time, researching facts and studying economic policies they would be far more efficient in their practice. To date I have not seen any rational debate from them on these boards as they are too busy making spurious claims and gossiping.
I thought socialists were supposed to make things better for working class people. New labour are definately the party for the rich.
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