Wednesday 7 July 2010

WEIR PURSUES BETTER DEAL FOR RURAL FUEL POOR


WEIR PURSUES BETTER DEAL FOR RURAL FUEL POOR

MINISTER AGREES TO LOOK FURTHER AT SUGGESTED SOLUTION

SNP Westminster Energy spokesperson Mike Weir MP has called on the UK
Government to take more action to help those in fuel poverty,
especially those not connected to the gas grid. Mr Weir was encouraged
that the energy department minister Gregory Barker promised to look at
his proposed solution.

Speaking in a debate on Fuel Poverty in rural Britain, Mr Weir said
that those off the gas grid “slipped through the cracks” and did not
receive the benefit of social tariffs. He called upon the UK
government to adopt a scheme he put forward during the debates on last
years Energy Act to spread the cost of social tariffs amongst all fuel
providers.

Speaking during the debate Mr Weir said:

“The Act allows the Secretary of State to introduce a reconciliation
mechanism that means that, should one company have more fuel-poor
customers than others it would not be particularly badly hit: the
burden would be spread among all the companies so that each would
meet, as far as possible, an equitable amount of the cost of meeting
the obligations under the social tariff. That principle is a good one,
and it could be extended further to bring in all fuel suppliers, to
allow a general sharing of the burden of the cost of meeting
obligations to help the fuel poor.

“A general reconciliation mechanism that brought those suppliers
within the ambit of the scheme, but which allowed the overall cost to
be shared between all the energy suppliers, would enable us to make
progress and extend the social tariff concept to that very
disadvantaged group.

“The main purpose of my amendment is simply to bring such consumers
into that more general reconciliation fund to bring about more
fairness and to tackle fuel poverty. In deciding to press ahead with
such a scheme, the Secretary of State should bring in all the
suppliers of all forms of energy and allow all their customers to
benefit from the scheme. As well as ensuring that no energy company
was disproportionately hit by having too many fuel-poor customers, it
would make it possible to share out the benefits more widely, and
would ensure that all energy suppliers could operate the equivalent
social tariff for their customers, whether they were in receipt of
electricity, gas or other forms of fuel. Ministers might be attracted
by the fact that it would be a revenue-neutral approach for the
Treasury; it would not impose a greater burden on it.”

Responding to the debate the energy department minister stated he was
prepared to look at the idea.

Commenting afterwards Mr Weir said he was encouraged that the Minister
was at least prepared to give his idea some consideration.

“For far too long the difficulties of bringing help to those off the
gas grid has been rejected as simply too difficult. Radical solutions
are needed to ensure that all those who are living in fuel poverty get
help.”

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