Helping to tackle fuel poverty
The main causes of fuel poverty are low incomes, poor housing stock and the cost of energy. Between 1996 and 2002, the number of households considered to be in fuel poverty fell from 5.5 million to an estimated 2.25 million largely due to improvements in incomes and falling energy prices.
Rising energy prices over recent years have seen this trend reversed and Ofgem estimates that in 2006 around 4 million households in the UK were likely to be living in fuel poverty.
The broader issues of poverty and social exclusion are essentially for the Government to tackle, but a joined up and holistic approach to bring together help on energy efficiency, benefits and money advice is the most effective way to combat fuel poverty.
Ofgem is helping to tackle fuel poverty on a number of fronts; by keeping up pressure on energy costs, promoting competitive energy markets, regulating network monopolies and encouraging more efficient use of energy.
Ofgem's Social Action Strategy sets out how we will meet our social obligations and assist in tackling fuel poverty. We adopt formal and informal routes to facilitate discussion and encourage best practice in tackling fuel poverty.
We also encourage the development of social initiatives and promotion of special services for vulnerable customers.
We also raise awareness of how companies meet their social obligations, and inform customers of the choices available.
See Ofgem's Social Action Strategy pages for more information.