Energy bills 10% higher in Wales

Energy customers in Wales are paying up to 10% more than people in England, an energy watchdog has found.

Energywatch Wales said it was concerned that 270,000 households were classed as "fuel poor," up from 130,000 in 2004.

Factors including low income, rising prices, higher supplier costs and prepayment meters all contributed to the size of the bills.

The Welsh Assembly Government, which will hear the report later, said it was committed to eradicating fuel poverty.

"It's actually getting to the stage now where it is critical"
Wendy Davies, energywatch Wales

Six energy companies will also give evidence to the assembly's sustainability committee on Thursday.

Energywatch Wales compared the prices of electricity bills in Wales and England and found that, on average, south Wales customers paid 10% more and north Wales customers 4% extra.

Average energy prices have risen by 15% since January, which energywatch believes has taken approximately 12.5% of Welsh households into "fuel poverty".

Wendy Davies, the Director of Energywatch Wales, said: "There are three factors which actually come into play when you look at fuel poverty - they are the energy efficiency of the dwelling , the actual cost of the fuel and low incomes.

"So those three elements we need to be tackling in different ways but what hasn't helped at all is the fact that prices have increased so much over the last four years - and it's actually getting to the stage now where it is critical."

She added: "The average energy bill in Wales now is over £1,000 a year."

ENERGY COMPANIES TAKING PART

• Centrica
• E-on UK
• Scottish and Southern Energy
• Scottish Power
• RWE nPower
• EDF Energy

A household in fuel poverty is defined as one which needs to spend more than 10% of its income to keep the home warm enough: 21C in the main living room, 18C in other occupied rooms.

The committee has said it is "deeply concerned about the impact of increasing fuel prices on Welsh customers and on efforts to tackle fuel poverty".

Committee chair Mick Bates said: "Fuel poverty and the impact of increasing fuel prices mean that there are many people cold this winter."

Sue Beck, 61, from Barry, Vale of Glamorgan, does not consider herself to be in fuel poverty yet, but is concerned that she is in a precarious position at the start of her retirement, and thinks it can only get worse.

Rising energy prices, combined with council tax and food price increases, have alarmed her.

The family are on a meter, and pay £20 a week for electricity and gas, but she has noticed they get less time on the cards, and she is now worried about turning on the heating.

"Through the worst months of the year, it can be £100 a month," she said.

"I think our Welsh assembly has got an ideal opportunity to take a lead. I'd like to see all this money which is given to winter warmth payment put to better use."

The assembly government has a target of eradicating fuel poverty in vulnerable households by 2010.

energywatch is suggesting a number of points to improve the situation, including:

• suppliers to revisit their pricing policy
• possible amendments to network charging policies
• realistic action plan to tackle fuel poverty
• encourage suppliers to look for a better deal
• suppliers to provide "proper" social tariffs"

Helen Northmore, head of Energy Saving Trust Wales, advised people to shop around for the best deals, save energy through measures such as turning off unwanted lights, and insulate their homes.