Energy companies must act to beat the freeze - Williams (Clwyd West Liberal Democrats)

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Clwyd West Liberal Democrats <info@libdems.org.uk>

Energy companies must act to beat the freeze - Williams

November 20, 2008 12:00 AM
Originally published by Welsh Liberal Democrats

As Wales prepares to be hit by an 'arctic blast' this weekend, with temperatures set to fall to 2C, the Welsh Liberal Democrats are calling for action to help reduce people's fuel bills.

Figures obtained by the Liberal Democrats last month indicated that up to 80% of single pensioners are likely to be living in fuel poverty this winter, around 175,000 in Wales. The Government this week announced plans to auction a second tranche of carbon permits as part of the Emissions Trading Scheme. Energy companies are estimated to have made a profit of £9 billion from the original permits which the Government gave them for free. The Liberal Democrats have argued that the energy companies should be forced to use these windfall profits to reduce their bills. The new Secretary of State for Energy and Climate Change Ed Miliband has set a deadline of 1st December for energy companies to prove their charges for pre-payment meters are fair, following a report from Consumer Focus which suggests that the poorest consumers are paying about half a billion pounds more than they should be through pre-payment. Commenting, Liberal Democrat Shadow Secretary of State for Wales, Roger Williams said: "Fuel poverty is going to be a serious issue for many in Wales this winter. Oil prices may be falling, but so far the energy companies are not reducing their prices. "The excess charges that are being made through pre-payment are scandalous. It is unacceptable that the poorest people in Wales face higher energy bills. "I am pleased that the Government have set a deadline for the companies, but they will have to take firm action to help consumers. If the Government had followed our advice to roll out smart meters, which show consumers how much energy they are using and how much they are paying, they could have saved Welsh consumers £58 million. On the Emissions Trading Scheme, Mr Williams added: "The Government are looking to auction the next set of carbon permits, but they have already given away £9 billion to energy companies when this scheme was set up. "The Government should force the energy companies to invest these windfall profits in cheaper bills for vulnerable people through social tariffs. "Energy companies need to act to help their customers - but if they won't, the Government must force them to." ENDS Notes:Figures on the level of single pensioner fuel poverty, compiled by the Office of National Statistics and based on information from the Bank of England, are attached.There are approximately 225,000 single pensioners in Wales, meaning over 175,000 will be affected.