?225M FUEL RELIEF SCORNED
Up to 100,000 households will receive help with their fuel bills under a deal with power companies brokered by the Government.
An extra ?225 million will be provided by the six biggest energy firms to help those struggling to pay rising power bills, but this has been described as a “drop in the ocean” for Devon and Cornwall.
In an announcement yesterday Business Secretary John Hutton said the companies would spend ?150 million by the year 2010 on social assistance on top of ?100 million over the next year and ?125 million in 2009-10.
The Government said that if the money was just used to offset bills it could remove up to 100,000 people from fuel poverty. Households which spend 10 per cent or more of their income on fuel bills are considered to fall into this category.
But Adam Paynter, the Executive Member for Environment in Cornwall, said this money was “next to nothing compared to the costs we’ve got” and described it as a “drop in the ocean”.
He said: “Yes, it’s going to help a few people but it’s not sustainable. Just giving handouts does nothing to address the problem. If they give it this year what’s going to happen next year?
“More should be done on making homes more energy-efficient.”
Colin Martin, of the Cornwall Renewable Energy Partnership, agreed. With more than 35,000 households in Cornwall alone affected by fuel poverty, he did not think this extra funding would go far enough.
However, Councillor Gordon Hook, Devon County Council’s Climate Change Champion, welcomed the news. He said: “The whole process seems potentially very advantageous and, on the surface, very good.”
Coun Hook said more than 30 per cent of Devon’s population, or more than 300,000 people, were considered to live in fuel poverty: “It’s a huge number and of course this affects the eldest most because of fixed pensions. Fuel prices are a huge drain on many people.”
Allan Asher, head of the consumer group, energywatch, said: “Whilst we welcome the removal of 100,000 homes from fuel poverty, the stark reality is that there are 4.5 million homes currently in fuel poverty.”
Although the energy firms involved have not yet decided how households will benefit from the extra money, ministers said it could be used to pay for energy efficiency measures.
Scottish and Southern said it was fully committed to delivering its share of the agreement and would quadruple the number of its customers benefiting from a special “social tariff”.
British Gas and EDF Energy also welcomed the announcement and said they would be working with the Government to support people struggling with bills.
Households can call the Energy Saving Trust’s national helpline on 0800 512 012. They will be put through to a local advice centre which can answer queries about support with fuel bills.
Source: thisiscornwall.co.uk
Tags: bills, price rising, UK