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Consumer Council Calls For Special Measures As Energy Prices Hit Home

Wednesday 28 May 2008

The Consumer Council today called on the Northern Ireland Executive to challenge the UK Government to earmark the £10.5 million energy VAT windfall to help vulnerable households this winter. The call comes as Northern Ireland Electricity announces a 14 per cent hike in electricity prices which, together with other rises in the cost of living, leaves consumers having to find an extra £40 per week in just one year for the essentials like food, fuel and mortgage repayments.

Eleanor Gill, Chief Executive of the Consumer Council said: “As the relentless rise in energy prices bite, the number of vulnerable households struggling to make ends meet is increasing by the day.  Extraordinary times call for extraordinary measures.  The sheer scale of these energy price increases should trigger an emergency financial package to help alleviate hardship in fuel poor households this winter.  All possible ways of paying for this emergency fund must be urgently explored.  The Consumer Council is calling on the NI Executive to challenge UK Government to earmark the additional £10.5 million in additional VAT which will be collected here this year as a result of increases in household energy prices for this fund.  This would pay for every fuel poor household to have a 10per cent reduction in the standard electricity tariff this year. 

“As one price increase follows another, the signs are that things will get worse before they get better.  At this time, every penny counts.  Consumers should make sure that they are receiving all payments they are entitled to, budget carefully and save money where they can and be as energy efficient as is healthily possible.

“The Fuel Poverty Taskforce set up recently by the Minister for Social Development, Margaret Ritchie has a vital role to play in bringing forward recommendations to tackle the immediate and longer term impact of soaring energy prices to tackle fuel poverty.  Households here pay 47% more for their energy[1], and we have double the number of fuel poor compared to the rest of the United Kingdom.  Alongside an emergency fund, we must explore the development of special energy tariffs for low income households for the longer term.

“The Consumer Council will continue to do its job on behalf of consumers and will work closely with the Utility Regulator to scrutinise any energy price increases so that consumers don’t pay a penny more than they need to.”

 

 

1.     Consumer Council media contact: Susie Brown, telephone, 028 9067 4807.

2       The Consumer Council is an independent consumer organisation, working to bring about change to benefit Northern Ireland’s consumers. The Council campaigns for high standards of service and protection and a fair deal for all. It also carries out research, gives advice and publishes reports and other publications. It deals with individual complaints about electricity, natural gas, coal, passenger transport and water.

3       For more information, visit our website at www.consumercouncil.org.uk

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