Energy and the costs involved
Published Date:
08 May 2008
By Michaal Foster
Labour member of Parliament for Hastings and Rye
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.
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Last Updated:
08 May 2008 7:38 AM
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Source:
n/a
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Location:
Hastings