SNP renew calls for 8 point energy action plan

Commenting after more announcements of energy price rises, SNP Energy Spokesperson Mike Weir MP has called for urgent action from the UK Government to tackle fuel poverty and help the most vulnerable customers with rising energy costs.

Mr. Weir said:

"The Scottish Government is to be congratulated for the action it is taking to tackle fuel poverty. A record number of central heating installations last year, plans to extend benefits health checks to all those applying to the Warm Deal programme, and the re-establishment of the Fuel Poverty Forum are all signs of how seriously the SNP Government takes its responsibilities.

"However we need real action now from the UK Government after these massive price hikes by the big six energy companies. We have already seen gas and electricity price increases of some 15 per cent this year, with Centrica announcing a 35 per cent rise in gas prices alone.

The following eight-point action plan by the Westminster Government would help achieve the target of eradicating fuel poverty by 2016:

1. A Mandatory minimum social tarriff to be introduced by all energy companies

The first step is to end the current confusion caused by energy companies having various social tariffs, which makes it complicated for customers on low incomes to decide which is actually cheapest.

Every energy company must ensure that its social tariff is the lowest tariff that it offers to customers.

A mandatory social tariff, available to all those who are fuel poor or are vulnerable to becoming fuel poor, would protect the hundreds of thousands of people in Scotland who suffer or are at risk from fuel poverty.

2. Accelerate data sharing programmes between the DWP and energy companies to enable home energy checks for vulnerable groups, and ensure that all fuel poor households are put on a social tariff. 

The Department for Work and Pensions (DWP) currently holds most of the reliable information on the extent of fuel poverty and also, just as importantly, those who are in danger of becoming fuel poor as prices rise, such as pensioners.

A data sharing programme is proposed from Winter 2009, which we believe should be in place from this Winter, so that key information can be provided to energy companies in order to allow for the lower pricing initiatives outlined above to be carried out properly. Identifying those customers who are either already fuel poor, or are in danger of becoming so, will be crucial to putting them on the lowest tariff available or limiting their meter payments.

3. Action to ensure that those paying for gas and electricity by pre-payment meters are not penalised by high charges. There should be a legal limit on pre-payment charges to ensure that they are no higher than other payment methods.

4. A scheme to help those suffering fuel poverty to replace outmoded domestic appliances with modern, energy efficient appliances. 

One of the main causes of energy inefficiency is that many people use out-of-date domestic appliances that use far more energy than modern appliances. Unfortunately, many of those who use old, inefficient appliances cannot afford to replace them, especially with the cost of living rising to steeply. Therefore, the UK Government should give financial support to priority groups to replace outmoded appliances with modern, energy efficient appliances.

5. A clear, mandatory timetable for the roll out of smart meters so that customers can keep track of energy consumption and costs. 

The introduction of smart meters in all homes would be a major step forward in improving energy efficiency, and would help pull people out of fuel poverty. Smart meters are able to tell householders how much energy their appliances are using at any one time - and can therefore be used to make significant energy efficiency gains.

The UK Government must make it mandatory for smart meters to be installed during all meter replacement activities, and in all new connections, and set a mandatory timetable for the full roll out of smart meters.

6. A further increase in this year's winter fuel payment

In the Budget 2008, the UK Chancellor announced a one off increase in the winter fuel allowance from £200 to £250 for over-60s and from £300 to £400 for over-80s. While this increase is welcome, it is dwarfed by the increase in energy bills.

The UK Government should commit to a further increase in this year's Winter Fuel Payment to reflect further fuel cost rises.

7. A Scottish oil fund

The establishment of a Scottish Oil Fund, guaranteeing direct and long-term benefits for the people of Scotland from our own natural resources.

8. Social tariffs for heating oil 

The UK Government must bring the markets for home fuel oil and propane gas under the remit of Ofgem, and look at the introduction of social tariffs in these markets across Scotland.