Call for government intervention to reduce energy bills

STV
Bill: Committee highlighted 'breakdown of trust' between public and energy providers.© STV

The Scottish Government has been urged to put pressure on energy companies in a bid to reduce household bills.

The proposal is one of several in a report on tackling fuel poverty from Holyrood's Energy and Tourism Committee.

A household is classed as being in fuel poverty if it has to spend at least 10% of income on energy bills.

According to a Scottish Government survey, an estimated 658,000 households were in fuel poverty in Scotland in 2010, or 28% of households.

This proportion is estimated to rise to 35% for 2011.

The committee also recommended a "one-stop shop" should be established to give people information and advice about domestic energy.

In the report, confusion, lack of information and lack of trust were cited as some of the challenges to tackling fuel poverty and to achieving a greater uptake of energy-efficiency measures.

It said customers feel confused at the large number of government schemes on offer and find it "nearly impossible" to make an informed decision about the most economical way to use energy at home.

Meanwhile, it said uptake of energy efficiency measures is being hampered because people have no way of finding out if their homes are energy efficient or not.

The report also highlighted a "breakdown of trust" between the public and energy companies and that the "complexity of tariffs" reduces consumer confidence.

MSPs suggest a one-stop shop approach, with a hotline number for people to get independent advice and referrals.

Committee convener Murdo Fraser said: "It is estimated that up to 35% of households in Scotland are living in fuel poverty. The lack of a clear message about what is available is preventing consumers getting the help they need to break free from fuel poverty.

"We believe a proactive approach is needed to reach the most vulnerable households. The use of a trusted intermediary as a one stop shop source of information and advice would remove many of the barriers which stop consumers from accessing the schemes available."

Other recommendations include asking regulator Ofgem to urge energy firms to simplify their tariff structures.