Plans to tackle fuel poverty

8.20.04am UTC (GMT +0000) Tue 29th Jul 2008

create social tariffs for vulnerable customers

The Liberal Democrats have set out how to help people struggling with rising energy costs with the publication of Tackling Fuel Poverty, launched today by Nick Clegg.

Energy companies should be compelled to use the money from a £9bn European windfall to help protect some of the most vulnerable people from the effects of fuel poverty, Liberal Democrat Leader Nick Clegg said.

The call comes as the Liberal Democrats publish their document Tackling Fuel Poverty, which sets out measures designed to help people struggling from rising energy costs.

The energy firms received the multi-billion-pound windfall thanks to the giveaway of free permits to emit Carbon Dioxide under the European Union's Emissions Trading Scheme. Previous estimates have put the proceeds of that windfall at £9bn, although a recent letter to Nick Clegg from Ofgem estimates the true figure could be even higher.

Proposals in Tackling Fuel Poverty include:

· Making energy companies invest £500m a year into a rolling programme to make sure homes are properly insulated

· Requiring energy companies to roll out social tariffs to over two million vulnerable customers

· Installing smart meters in homes, which display real time consumption costs