Fuel poor 'must be targeted'
Homes suffering fuel poverty need to be targeted by the government, the regulator said today.
Ofgem has now called on customer's data to be shared between the government and energy companies so consumers struggling to pay their gas and electricity bills can be helped in the run-up to the coming winter.
So far suppliers have committed to increase spending on social tariffs by £225 million over the next three years, and Ofgem says for this cash to be best spent firms and government need to co-ordinate.
Homes are classed to be in fuel poverty if ten per cent of their income goes on gas and electricity bills.
Sir John Mogg, Ofgem chairman, said: "Fuel poverty is caused by a combination of rising energy prices, low incomes and poor housing.
"That is why action must first and foremost be for government. But we have to find ways to identify and target more effectively low income and vulnerable customers most in need of help from the government, suppliers and non-government agencies."
Further new measures called for by Ofgem include a campaign with Citizens Advice to advise low income families to help them make more informed energy choices.
Also leading switching site providers and comparison sites are being asked to promote their telephone switching service for customers without internet access,
Ofgem is also calling a pilot to be run by eaga, which runs the Warm Front Programme, and energy firms to check some 3,000 vulnerable customers are on their suppliers' cheapest tariff.
Energy minister Malcolm Wicks, responding to the report, said: "We've got a commitment from the energy companies now to provide an extra £225 million in social assistance by increasing their investment to £150 million per year by 2011.
"Now we're working on finding ways to get them the right information to enable them to get that money to those who need it the most. That's what's most important right now - making sure the most vulnerable, the elderly, the disabled and young families aren't cold in their own homes because they can't pay their bills."
He added: "In the light of rising energy prices and the increasing global demand for energy we have to think long term and carefully and provide sustainable solutions to those most likely to need help. As well as measures to improve the incomes of the vulnerable, a key part of this must be energy efficiency which will help bring people's bills down in the future and keep their homes warm. It means using schemes such as the LCBP to ensure the fuel poor can benefit from the lower bills that modern technology can bring."
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