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Monday, 14 January 2008
Stoate calls for Government assistance with fuel bills
Dartford MP, Dr Howard Stoate, has called on the Government to require all energy suppliers to introduce a ‘social tariff’ for lower income households.
 
The MP is concerned about the impact of rising gas and electricity prices on lower income households - such as those in receipt of an income or disability related benefit. Some energy suppliers are already offering a lower rate tariff for ‘vulnerable households’ but the picture is patchy and Dr Stoate wants the Government to step in and insist that all energy suppliers offer a low rate ‘social tariff’. He has signed a House of Commons motion calling for universal social tariff which has been supported by almost 100 MPs.
 
“With gas and electricity prices on the rise again many lower income households are going to find it difficult this year to meet their fuel bills. If the Government is serious about meeting its target of eliminating fuel poverty across the country then it needs to step in and place a duty on all energy suppliers to introduce a lower rate ‘social tariff’. In today’s day and age people shouldn’t have to struggle to heat their homes to a safe and comfortable level,” said Dr Stoate.
 
The House of Commons motion also calls on the Government to prevent energy suppliers from charging households that use a pre-payment meter at a higher rate than households that pay by direct debit. Statistics show that households with a prepayment meter, which are almost always low income families, pay around £125 a year more for their gas and electricity than those paying by direct debit.
 
“To me it seems scandalous that some of the most vulnerable households in the country are being charged at a higher rate than households that can afford to pay by direct debit. The Government has to take action to stamp this practice out and ensure that lower income households are not penalised in this way,” said the MP.
 
Notes

The Government has set a target of eradicating fuel poverty among vulnerable households (households containing children or people who are elderly, sick or disabled) by 2010 and among all households by 2016. A household is said to be in fuel poverty if it needs to spend more than 10% of its income to maintain satisfactory heating (usually 21 degrees for the main living area, and 18 degrees for other occupied rooms).
 
The House of Commons motion calls for legislation that would require energy suppliers to offer social tariffs in accordance with minimum criteria. Social tariffs should be the lowest cost tariff that a supplier offers and recipients should be able to access it regardless of their payment method.
 
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© 2008 Dr Howard Stoate - Member of Parliament for Dartford
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