To ask Her Majesty’s Government what consideration they have given to encouraging energy companies to use income-differentiated tariffs as a means of addressing fuel poverty.
Answered on
8 September 2014
This answer is a correction from the original answer.
Energy suppliers provide direct bill support for low income households through the Government’s Warm Home Discount scheme. The Warm Homes Discount will increase to give eligible low-income bill payers £140 money off their energy bills, helping over 2 million people including 1.4 million of Britain’s most vulnerable pensioners.
There has been consideration of the role of differentiated tariffs as part of the Hills Review of Fuel Poverty, and in the development of Fuel Poverty: Framework for future action and Cutting the cost of keeping warm, the consultation to prepare for a new fuel poverty strategy.
We continue to monitor the impacts of the Ofgem’s Retail Market Review and wider Government action to ensure consumers are treated fairly in the energy market and are better able to the choose a deal that suits them. We expect to keep the case for further action under review as part of this.
Original answer
Energy suppliers provide direct bill support for low income households through the Government’s Warm Home Discount scheme. As the original impact assessment for the scheme made clear, the scheme grew in part out of a concern about affordability of energy bills and accessibility of appropriate tariffs for those on low incomes. The scheme is now hugely successful. This year the Warm Home Discount will give eligible low-income bill payers £140 money off their energy bills, helping over 2 million people including 1.4 million of Britain’s most vulnerable pensioners.
There has been consideration of the role of differentiated tariffs as part of the Hills Review of Fuel Poverty, and in the development of Fuel Poverty: Framework for future action and Cutting the cost of keeping warm, the consultation to prepare for a new fuel poverty strategy.
We continue to monitor the impacts of the Ofgem’s Retail Market Review and wider Government action to ensure consumers are treated fairly in the energy market and are better able to the choose a deal that suits them. We expect to keep the case for further action under review as part of this.