"If chancellor will not come to Glasgow East, SNP will send Glasgow's demands to Darling"

The Scottish National Party's candidate in the Glasgow East by-election today [Tuesday] called for urgent action from the UK government to tackle fuel poverty, and help the most vulnerable customers with rising energy costs.

Cllr John Mason has sent the Chancellor of the Exchequer Alistair Darling an eight-point action plan to help those struggling most with rising energy costs.

Cllr Mason said: "The Scottish Government is to be congratulated for the action it is taking to tackle fuel poverty.  A record number of central heating installations last year, plans to extend benefits health checks to all those applying to the Warm Deal programme, and the re-establishment of the Fuel Poverty Forum are all signs of how seriously the SNP administration takes its responsibilities.
 

"However, without the full responsibilities of independence, the Scottish Government's powers are limited – particularly in this vital area – and that means we need real action now from the UK government at this time of rising fuel prices.  We have already seen gas and electricity price increases of some 15 per cent this year, with forecasts of further rises of as much as 40 per cent to come.

"The rate of fuel poverty is three-times as high in Scotland as south of the Border.

"Growing numbers of people struggling to pay soaring energy bills amid energy plenty is totally unacceptable in 21st century Glasgow and Scotland – and at a time when the Treasury is being propped up by billions of pounds of extra revenue from Scottish oil.

"There is little sign so far that the London Labour government understands the need for action.  Neither the Prime Minister nor the Chancellor of the Exchequer are even prepared to come to Glasgow during this by-election to listen to the concerns of local people.

"That is why I am writing to the Chancellor, demanding action on a practical eight-point plan that will deliver real help for those most in need.

"And if elected to represent Glasgow East a week on Thursday, eradicating fuel poverty once and for all in energy-rich Scotland will be a priority."

EIGHT-POINT ACTION PLAN TO TACKLE FUEL POVERTY

The following eight-point action plan by the Westminster Government would help achieve the target of eradicating fuel poverty by 2016:

1. A MANDATORY MINIMUM SOCIAL TARIFF TO BE INTRODUCED BY ALL ENERGY COMPANIES

The first step is to end the current confusion caused by energy companies having various social tariffs, which makes it complicated for customers on low incomes to decide which is actually cheapest.

Every energy company must ensure that its social tariff is the lowest tariff that it offers to customers.

A mandatory social tariff, available to all those who are fuel poor or are vulnerable to becoming fuel poor, would protect the hundreds of thousands of people in Scotland who suffer or are at risk from fuel poverty.

2. ACCELERATE DATA SHARING PROGRAMMES BETWEEN THE DWP AND ENERGY COMPANIES TO ENABLE HOME ENERGY CHECKS FOR VULNERABLE GROUPS, AND ENSURE THAT ALL FUEL POOR HOUSEHOLDS ARE PUT ON A SOCIAL TARIFF

The Department for Work and Pensions (DWP) currently holds most of the reliable information on the extent of fuel poverty and also, just as importantly, those who are in danger of becoming fuel poor as prices rise, such as pensioners.

A data sharing programme is proposed from Winter 2009, which we believe should be in place from this Winter, so that key information can be provided to energy companies in order to allow for the lower pricing initiatives outlined above to be carried out properly.  Identifying those customers who are either already fuel poor, or are in danger of becoming so, will be crucial to putting them on the lowest tariff available or limiting their meter payments.

3. ACTION TO ENSURE THAT THOSE PAYING FOR GAS AND ELECTRICITY BY PRE-PAYMENT METERS ARE NOT PENALISED BY HIGH CHARGES.  THERE SHOULD BE A LEGAL LIMIT ON PRE-PAYMENT CHARGES TO ENSURE THAT THEY ARE NO HIGHER THAN THOSE PAYING BY DIRECT DEBIT

As outlined above, some of our most vulnerable people are being over charged by energy companies simply for using pre payment meters instead of direct debits.  This is effectively punishing people for managing their finances by paying cash for a service in advance.

To end this unfairness, there should be a legal limit on how much a company can charge any fuel poor customers who use prepayment meters – around a third of those who use meters are fuel poor.

4. A SCHEME TO HELP THOSE SUFFERING FUEL POVERTY TO REPLACE OUTMODED DOMESTIC APPLIANCES WITH MODERN, ENERGY EFFICIENT APPLIANCES

One of the main causes of energy inefficiency is that many people use out-of-date domestic appliances that use far more energy than modern appliances.  Unfortunately, many of those who use old, inefficient appliances cannot afford to replace them, especially with the cost of living rising to steeply.  Therefore, the UK Government should give financial support to priority groups to replace outmoded appliances with modern, energy efficient appliances.

5. A CLEAR, MANDATORY TIMETABLE FOR THE ROLL OUT OF SMART METERS SO THAT CUSTOMERS CAN KEEP TRACK OF ENERGY CONSUMPTION AND COSTS

The introduction of smart meters in all homes would be a major step forward in improving energy efficiency, and would help pull people out of fuel poverty.  Smart meters are able to tell householders how much energy their appliances are using at any one time - and can therefore be used to make significant energy efficiency gains.

The UK Government must make it mandatory for smart meters to be installed during all meter replacement activities, and in all new connections, and set a mandatory timetable for the full roll out of smart meters.

6. A FURTHER INCREASE IN THIS YEAR'S WINTER FUEL PAYMENT

In the Budget 2008, the UK Chancellor announced a one off increase in the winter fuel allowance from £200 to £250 for over-60s and from £300 to £400 for over-80s.  While this increase is welcome, it is dwarfed by the increase in energy bills.

The UK Government should commit to a further increase in this year's Winter Fuel Payment to reflect further fuel cost rises.

7. A SCOTTISH OIL FUND

The establishment of a Scottish Oil Fund, guaranteeing direct and long-term benefits for the people of Scotland from our own natural resources.

In Norway, the most recent estimate places the value of their fund – established only in 1995 – at around £186 billion, and by 2010 this could stand at a minimum of £250 billion.  The Alaskan oil fund is worth £19 billion, and the fund in Alberta is estimated at £8.8 billion – both of which demonstrate that even prior to independence Scotland can still make progress in this vital area.

8. SOCIAL TARIFFS FOR HEATING OIL

The UK Government must bring the markets for home fuel oil and propane gas under the remit of Ofgem, and look at the introduction of social tariffs in these markets across Scotland.