Energylinx UK Energy Industry News Service
July 19, 2010
An end to fuel poverty in sight??
With more and more customers falling into the fuel poverty* trap (latest estimates are around 4.8 million homes) Energylinx asks the question why government departments have not focused on resolving this at grass roots levels by encouraging customers to simply switch energy supplier to the least cost supplier.
Energylinx predicts that with careful management of those customer's transferring, ensuring that they do geniunely receive a 100% impartial comparison, that the likelihood is that fuel poverty could be eradicated in the UK almost overnight. The only negative issue is that if this was to happen energy suppliers would be forced to increase energy costs as they simply could not maintain their current competitive position with the sheer number of new customers joining them at the most competitive rates.
Energylinx predicts that if in an ideal world that all 4.8million fuel poor switch supplier to the least cost supplier for their household then energy prices across the board would need to increase by circa. 3% to allow suppliers to maintain current profit margins.
The result is that the 4.8 million homes taken out of fuel poverty some 600,000 would ultimately fall back into that position. At this level government initiatives could readily help reduce this further by the use of programmes such as http://www.direct.gov.uk/en/Pensionsandretirementplanning/Benefits/BenefitsInRetirement/DG_185940. With some simple changes to this very welcome programme a further 150,000 households could easily be helped out of the pain of fuel poverty.
A further easy change would be stop paying the 63,740 pensioners who are resident full time outwith the UK their Santa fund** ....................oops winter fuel payment! The winter fuel payment was introduced back in 1997 to help those over 60 manage their energy bills and cope with the winter temperatures. Last year those payments amounted to circa. £14million to those living outwith the UK.
Energylinx can be reached on 0800 849 7077 or simply by logging onto www.energylinx.co.uk. Do not worry if you have never switched supplier before or feel that you cannot do so without help, contact Energylinx and we will take care of the entire transfer process. Remember as well that we are completely impartial and have no axe to grind with any one particular supplier so if we advise that xxxx supplier is best for you then it will be as all we want to do is find the very best deal for you.
*Fuel Poverty is where 10% of the household net disposable income or more is spent on energy.
**Santa Fund - posters have appeared in european resorts where the target market is over 60s reminding them to claim the Santa Fund on a regular basis over the last few years.