Liberal Democrats call for £9bn to tackle fuel poverty

8.37.00pm BST (GMT +0100) Tue 29th Jul 2008

Local Liberal Democrat Kevin Lang believes it is time to protect people from fuel poverty

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 say the Liberal Democrats.

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 Liberal Democrat leader 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

Local Liberal Democrat parliamentary candidate for Edinburgh North & Leith, Kevin Lang said,

"Many families in Edinburgh North & Leith will simply not understand why energy companies are receiving a massive windfall at a time when they are struggling to pay their energy bills.

"This multi-billion pound windfall should be used to protect the most vulnerable people from the effects of fuel poverty.

"The Labour Government must take action. Any failure to do so will only leave families with even tougher time in paying their fuel bills this winter."