The Energy Retail Association responds to the Budget 2008

Duncan Sedgwick, chief executive of the Energy Retail Association, said:

"The Chancellor’s warm words do not constitute a fuel poverty strategy.

"We want to know how the Government plans to work with energy companies to target low income families.  It needs to get better at sharing the information it has in order to target those most in need. Energy companies are willing to support the Government, but we need a complete re-think on how to tackle fuel poverty.  That doesn’t mean tinkering around the edges. There is a danger that despite the Chancellor’s warm words and continued actions from the industry many families will remain in poverty.

"The statement offered no answers to how the Government is going to tackle fuel poverty in order to meet its target in two years.  For a small number of people the increased winter fuel payment will make a real difference, but this is a one off payment and will not help in the long term. 

"The unimaginative call for more money and “better deals” is not backed by any clear policy. Plans to tamper with the tariffs for ‘pay as you go’ meters is a clear signal that the Government does not understand the energy market.  The Government has ignored official figures that show only 20% of pay as you go customers are fuel poor and this payment option helps them to avoid debt.  Today’s announcement will also put extra money in the pockets of people with holiday lets, weekend homes and in student accommodation. The rest of us who don’t pay as we go, including millions in fuel poverty, will foot the bill."

                                                                                                                                                            
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