UK: Energy summit a disaster, say campaigners

Mervyn Kohler, special adviser to Help the Aged, described the lack of concrete measures to come out of the summit as a slap in the face to the poorest consumers – those who are forced to spend at least 10% of their income to heat and light their home.

Seven government ministers and representatives from each of the big power companies attended the summit, which was called by industry regulator Ofgem to discuss what the large suppliers could do to halt the dramatic rise in the number of households, particularly the elderly, struggling to pay their energy bills.

However, the summit ended without any proposals and instead Ofgem said it would publish an action plan in May.
"It's all very disappointing, there was nothing new in this at all," said Kohler. "I liken it to the shuffling of deckchairs on the Titanic. What we need is some concrete measures, not just from the industry, but from the government itself."

Prices to rise steadily
Ofgem called the summit after months of negative headlines over fuel poverty, a problem estimated to blight 2.3m of the most vulnerable households in England. Some analysts are advising that gas prices are set to rise by another 25% over the coming year, which would throw another 1m households into fuel poverty.

According to Ofgem, those on the lowest incomes, who are forced to use pre-payment meters, now typically pay £125 a year more for their gas and electricity than the better-off.

Sir John Mogg, head of Ofgem, who chaired the summit, said: "Low incomes and poor housing are the chief causes of fuel poverty and for the government to address. In calling this summit Ofgem has put its duty to help the vulnerable into top gear without compromising the power of the market to help those same consumers."

He promised a series of measures to make sure help is "pinpointed on people who genuinely need it". He also wants the switching websites to start enabling pre-payment customers to switch suppliers. The Conservatives and the Liberal Democrats yesterday called for greater leadership from the government and better co-ordination between Whitehall and the energy firms.