Energylinx UK Energy Industry News Service
November 22, 2004
Energy Smart launched to help reduce household fuel bills
Household fuel bills could be reduced by £1 billion a year through switching fuel suppliers and improving energy efficiency, Trade and Industry Secretary Patricia Hewitt MP will tell an energy consumer summit in London today.
Ms Hewitt and Energy Minister Mike O'Brien are launching a new drive to get consumers - particularly vulnerable consumers - to 'switch and save' and cut the cost of fuel bills this winter.
At the summit Ministers will outline specific annual savings for households with gas and electricity:
First time switchers could save up to £100 a year on fuel bills.
Changing payment method from standard credit (i.e. cheque/cash) to direct debit could save around £20 a year. Pre-payment meter users stand to save even more.
Energy efficient measures such as cavity wall insulation alone could save £35 a year.
Ms Hewitt said:
"We know that for many families fuel bills are a significant part of their weekly outgoings, and we need to do more to help the most vulnerable consumers benefit from big savings that are out there.
"Half of all households have never switched energy supplier, despite the fact that there are big savings still to be made. Our message today is simple - why pay more for your gas and electricity than you need to?"
Energy Minister Mr O'Brien said:
"This energy consumer summit is a call to action - government, regulators and industry together in a concerted drive to raise awareness of the savings available to consumers from shopping around, and the support available to vulnerable households.
"Improved winter benefits and energy efficiency grants since 1997 have helped cut by two-thirds the number of fuel poor homes. But as winter starts to bite we have to ensure that the poorest in particular know what steps they can take to reduce their fuel bills further."
The summit will launch the 'Energy Smart' awareness-raising campaign run by consumer watchdog Energywatch, industry regulator Ofgem and supported by the DTI. Representatives of vulnerable groups will also be at the summit to discuss how Energy Smart can reach those in greatest need of help in reducing fuel bills.
Allan Asher, Chief Executive of Energywatch, said:
"Consumers have been hit hard this year by rocketing fuel bills but being energy smart can save money. The hike in energy bills is forcing vulnerable consumers into fuel debt and poverty this winter. Dumping expensive suppliers, being more energy efficient and changing payment method are all ways of saving lots of money."
Ofgem Chief Executive Alistair Buchanan said:
"At a time of rising energy prices it is important that all energy customers, and especially the vulnerable, are fully aware of the choices available to them to help reduce their fuel costs. Underpinning these choices is the need for consumers to have confidence in the energy companies they are dealing with. Ofgem has a key role to play here to ensure that companies play by the rules, and where they don't, we take action."
Despite recent increases announced by suppliers, domestic prices are in real terms still cheaper than in 1997 (electricity 14% cheaper, gas 1%) and cheaper than before privatisation.
Since 1997 the Government has shown that it is serious about putting an end to fuel poverty. More than 11 million older people last year benefited from a total of £1.9 billion in Winter Fuel Payments. More than £600 million has been invested through the Warm Front initiative improving central heating and insulation in more than 900,000 households, with a further £140 million over the next three years.
Notes to Editors:
1. Secretary of State for Trade and Industry Patricia Hewitt and Energy Minister Mike O'Brien will launch Energy Smart at 11am at the Royal Horticultural Hall (Lecture Theatre), Greycoat Street, London SW1P 2QD.
2. Consumers wanting to switch energy suppliers can get advice from Energylinx on 0845 225 2840 or from www.energylinx.co.uk. Consumers wishing a free quote covering all potential energy suppliers for their home can get advice from Energylinx on 0845 225 2840 or from http://www.energylinx.co.uk. Energylinx offers its services free of charge and acts as a one stop shop for anyone wishing to transfer energy supplier
3. Low-income households may be able to get help with improvements to insulation and/or central heating from their energy supplier or through the Government's Warm Front initiative. Warm Front is administered by Powergen Warm Front Ltd in the Eastern, East Midlands and Yorkshire and Humber regions (contact 0800 952 1555 or http://www.powergenwarmfront.co.uk and EAGA Partnership Ltd in London, South East, South West, West Midlands, North West and North East regions (contact 0800 316 6011 or http://www.eaga.co.uk http://eaga.co.uk). Suppliers also offer Benefit Entitlement checks for Warm Front applicants not in receipt of qualifying benefits.
4. Energywatch is the independent gas and electricity consumer watchdog. It provides free, impartial information and advice to energy consumers who are experiencing difficulty in resolving complaints directly with their energy supply companies.
5. Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority, the regulator of the gas and electricity industries in Great Britain. Ofgem's aim is the bring choice and value to all gas and electricity customers by promoting competition and regulating monopolies. The Authority's powers are provided for under the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000.
6. There are 26 million electricity accounts and 20 million gas accounts. Non-switchers are paying 22% more on their energy bills than those who have switched (NAO report June 2003). Fuel poverty is defined as needing to spend more than 10% of income on fuel to maintain an adequate standard of heating.
Posted by energylinx at November 22, 2004 10:18 AM Technorati: Energy Prices

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