The Coalition Government devolved the delivery of fuel poverty policy to the energy supply industry by introducing the Energy Company Obligation (ECO) to the household names in the energy supply business. Via their licence to supply, they are obligated to reduce domestic carbon emissions (ie help households to use less energy) by the most cost-effective method.
Scaling back of the Energy Company Obligation
This turned out to be a programme which added about 5% to gas bills and about 11% to electricity bills yielding some £1bn per year for remedial fuel poverty work. As global energy prices rose, these ‘extras’ on gas and electricity bills came into the firing line, and the Government scaled back ECO in 2013. With no tax-funded programme in play, and what is effectively a cap on what it obliges energy companies to do, the outlook for those in fuel poverty is bleak. Continue reading “Fuel poverty – the next steps?”