Poorest 'must pay less for fuel'

6.11.49pm UTC (GMT +0000) Wed 9th May 2007

The poorest households should pay less for their gas and electricity, according to Energywatch. Three million households in Britain struggle to pay, says the energy watchdog, and it wants the government to force firms to cut their bills.

It suggests the Energy White Paper makes companies introduce social tariffs to cut bills for the poorest while others paid slightly more. Energy companies say such a move should be their choice and not compulsory.

But Energywatch says the forthcoming white paper should include an obligation on gas and electricity companies to offer a social tariff. That could mean a 20% price reduction for households on means-tested benefits, but other customers would have to pay a little more.

A few energy retailers already offer special deals for poorer customers, but their trade association, the Energy Retail Association (ERA), says forcing them to offer social tariffs is not the answer. A ERA spokesman pointed out that supermarkets were not being told to offer cheaper food to poorer customers.