Supplementary memorandum submitted by
the Fuel Poverty Advisory Group (CCB 10a)
IMPACT OF
THE FUEL
POVERTY ADVISORY
GROUP
Clearly there are a number of influences on
policies. This note sets out a few key areas where FPAG made a
difference although others have obviously played a role as well,
and other areas where FPAG's advice has not been followed.
POSITIVE IMPACT
OF FPAG
— Significant increase in funding
for the Fuel Poverty Programmes, especially Warm Front in the
light particularly of the estimates provided by FPAG of resources
required to meet the fuel poverty targets. Some of these increases
were funded by increasing upstream taxation as proposed by FPAG.
— Helpful changes to Warm Front
in April 2005.
— Introduction of Social Tariffs
by a number of suppliers following positive guidance from Ofgem,
which had been encouraged by FPAG.
— Incentives for Gas Network Extension
likely (although not yet certain) in Ofgem's Gas Distribution
Price Control.
— DWP willing to share information
to help in targetting fuel poor and generally positive approach
from DWP.
FPAG ADVICE NOT
FOLLOWED
— Very large and increasing gap
between Direct Debit prices on the one hand and prepayment and
other prices on the other. Ofgem (and DTI) have not been willing
to act on this and there has been no drive to capitalise on new
technologies, which could help to resolve the problem, and other
possible schemes for cheaper payment arrangements to low income
customers have not yet been pursued.
— Increase in energy prices generally
and lack of transparency about the energy companies' margins.
— Defra decision to reduce the
share of low income groups in EEC—the Energy Suppliers'
Energy Efficiency Programmes.
— Inadequate energy efficiency
part of the Decent Homes Standard that leaves some households
in fuel poverty.
— Failure to engage CLG and its
predecessors generally and also to persuade Ofgem on a number
of key issues.
— It seems unlikely that the 2010
target will be met unless there are radical policy changes.
FPAG oral evidence to Efra Committee—correction
In my evidence I said that the fuel poverty
target was put in place about five or six years before the date
of the first target. In fact it was earlier than this. The 2010
target was set in early 2003, ie seven to eight years before the
target date of 2010. On reflection this did result in rather less
urgency in the early years.
Peter Lehmann
Fuel Poverty Advisory Group
May 2007
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