NEW TARIFF STRUCTURE WON’T TACKLE FUEL POVERTY
Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy and energy committee, is warning that a new tariff structure from the energy regulator won’t adequately tackle fuel poverty.
Ofgem has decided to allow energy suppliers to include standing charges in their new tariffs. These charges discriminate against small-use or energy efficient consumers as they form a larger proportion of their overall energy bill.
Alison Johnstone said:
“While the simplification of tariffs is a laudable aim it is disappointing that the regulator has failed to consider the effects of standing charges, which effectively mean small-use consumers subsidise larger consumers.
“It means it will still be difficult to compare energy companies’ charges. I asked Ofgem to justify its proposal to require standing charges and they were unable to do so.
“It is clear we need greater control, greater political will and greater powers for regulators if we are to break the stranglehold of the big energy companies. Only then can we hope to eradicate fuel poverty.”
Alison’s correspondence with Ofgem can be downloaded here: