Ofgem : the social action plan and the energy efficiency commitment, thirtieth report of session 2004-05, report, together with formal minutes, oral and written evidence

House of Commons papers 2004-05, 442. Some 2.25 million households in the UK are classified as being in fuel poverty, spending more than 10 per cent of their income on energy to heat their homes.

Some consumers get into debt, often through inaccurate estimated bills, and they are then required to use pre-payment meters, even though this is the most expensive way of purchasing energy.

Ofgems encouragement of suppliers to recover the cost of installing and using pre-payment meters is found to be inconsistent with its obligations towards vulnerable consumers (in contrast, Ofgem protects rural consumers from paying the higher costs of delivering energy to their homes).

The Committee concludes that suppliers should provide accurate bills, should not discriminate against pre-payment meter consumers, and should provide more information to them about the disadvantages of those meters.

On the energy efficiency commitment (administered by Ofgem), requiring energy suppliers to meet specific energy saving targets, the Committee queries whether the provision of measures such as cavity wall insulation and low-energy lightbulbs, do actually deliver the energy reduction intended. Ofgem, with the Department for Environment, Food and Rural Affairs, and the energy suppliers, should undertake a national campaign to encourage energy efficiency.

Clearer explanation of the environmental measures to save energy, and their costs to consumers, is recommended.