Lib Dem's Suggest Linking Fuel Poverty & Climate Change

3.05.00pm GMT Wed 29th Oct 2008

Lib Dems demand: "Tackle fuel poverty and climate change together" as the average UK household faces energy bill of £1,200 a year.

In 2001, Labour pledged to eradicate fuel poverty by 2010 but with massive price increases in electricity and gas, 4.5 million are now in fuel poverty (est OFGEM).

Energy firms have received a £9 billion windfall in the European Emissions Trading scheme at the same time as people are facing an increasingly desperate struggle to pay their energy bills. Lib Dems insist this windfall should be used to protect the most vulnerable from the effects of fuel poverty and to cut consumption of energy and reduce the release of carbon.

Lib Dem Solution: Make Energy companies invest £500 million each year to make sure homes are properly insulated.

Savings: £200 a year for the typical household and 20% cut in household CO2.

Lib Dem Solution: Make Energy companies have a social tariff to the 2 million most vulnerable customers.

Saving: £142 a year for those on the higher tariff of prepayment meters.

Lib Dem Solution: Install SMART meters in homes showing consumption costs.

Saving: Such meters reduce energy use by up to 15% which would equal a £100 saving to the average household.

What the Press think: "A neater solution has been identified by the Liberal Democrats …it is to the Liberal Democrats credit that they have grasped some simple truths about the relationship between climate change and household energy use." Observer 3rd August 2008