Energy firms to boost efficiency subsidies to households

Published Date: 14 September 2008

By Lucy Christie

HOUSEHOLDERS are to get an increased share of energy company help in reducing fuel bills under a new deal struck with suppliers.
Scotland's main energy firms have pledged to boost their investment in household efficiency measures after discussions with the communities minister. Stewart Maxwell made the announcement last week.On the agenda was Scotland's share of the £3.36 bn fund created to achieve the nationwide Carbon Emissions Reductions Target (CERT), which asks suppliers to subsidise efficient appliances, loft insulation and low-energy light bulbs.The Government said data collected under the first phase of the scheme from 2002-5 showed that spending in Scotland was around 22% below its proportionate share, a shortfall equal to around £18m in the current programme.Maxwell said Scotland was in line to achieve its fair share of the budget over the next three years, estimated at £321m. "I was encouraged by the energy companies' commitment to work with us to help reduce fuel bills, and specifically to provide insulation measures to help Scotland's fuel-poor households. The energy companies also agreed to provide information on CERT activity in Scotland, which is currently only reported on a GB-wide basis, and ensure that Scotland secures at least a pro-rata share of the measures. "Gordon Brown unveiled a £1bn package to help struggling households cope with energy prices on Thursday.Maxwell said: "As well as energy-efficiency measures, the UK Government should have provided direct support ... by recouping windfall gains made by the energy companies."