Energy companies urged to cut bills NOW

‘Consumers must see lower bills’ – Energy Minister Fergus Ewing

Consumers should be benefitting from lower energy bills as a result of lower oil prices, Energy Minister Fergus Ewing said yesterday.

Mr Ewing has written to ScottishPower, SSE, E-on, EDF, RWE/Npower, Centrica and Energy UK to seek reassurance that lower wholesale energy costs, linked to the fall in the price of oil, will be passed on quickly to households and businesses.

The letter reads:

Dear Sir

The price of oil on world markets has moved substantially lower in recent weeks in response to changes in the pattern of global demand and production. The Scottish Government is working closely with the oil and gas sector to understand the implications of these changes for activity and employment in the North Sea.

Another aspect of falling oil prices is, of course, the consequent impact on energy prices more generally. Clearly, the wholesale price of energy, for both electricity and gas, is linked closely to the world price of oil and energy customers are therefore entitled to know when they can be expected to feel the benefit.

In the interests of transparency and fairness, I would be grateful to understand from you when and to what extent the lower oil price is likely to be reflected in lower energy bills for households and businesses in Scotland. I also seek your reassurance that any cost savings will be passed on to customers at the earliest opportunity and to the fullest extent possible.

I do not ask you to reveal any commercially sensitive information but I would be grateful for your high-level perspective as an industry leader on the expected scale and timing of oil price impacts on domestic and business energy bills.

I am writing in similar terms to the Chief Executives of the UK’s other leading energy suppliers and I look forward to your response.

Yours,

Fergus Ewing

Burgess: 'Westminster has failed fuel poor'

Scottish Government calls on UK to do more to address fuel poverty

Housing Minister Margaret Burgess has demanded Westminster do more to cut fuel bills for vulnerable households as new figures show higher energy prices pushed more people into fuel poverty in 2013.

Mrs Burgess has asked the UK Government to urgently increase the £140 a year Warm Homes Discount that helps low income households.

The Scottish House Condition Survey, published yesterday, shows a seven per cent increase in fuel prices between 2012 and 2013 led to 100,000 more households living in fuel poverty.

Fuel bills have now risen nearly six times faster than household incomes since 2003.

Scottish Government spending on domestic energy efficiency, which is £94 million this year and next, has already made hundreds of thousands of homes warmer and cheaper to heat and, as the report indicates, has helped to mitigate the rise in fuel poverty.

Mrs Burgess said: “Fuel prices rose by an inflation-busting seven per cent in 2013, pushing more people into fuel poverty. The fact that this is happening in an energy-rich country is scandalous.

“We have invested over £300 million since 2009 to make fuel poor homes more energy efficient. This year and next, we are spending £94 million to improve energy efficiency. Around one in three Scottish households, over 700,000, have now benefited from measures like new boilers or insulation.

“These statistics make clear that without action to improve energy efficiency, which is our responsibility, price increases would have put even more households into fuel poverty in 2013.

“So the Scottish Government is doing what it can, but we don’t control prices and don’t have any powers over ECO or the Warm Homes Discount.

“Fuel costs have risen six times faster than incomes since 2003, while the UK Government’s fiscal policies since June 2010 will leave the poorest 20 per cent of households worse off by the equivalent of £441 per year in 2015-16. We will mitigate against this where possible but we know there are further cuts to come.

“That is why we are calling on the UK Government to increase the Warm Homes Discount and fund that increase centrally. That would give immediate relief to the lowest income households and those on benefits and go some way to lifting people out of fuel poverty this winter.”

Patrick Harvie, Scottish Green MSP for Glasgow and a member of Holyrood’s economy and energy committee, called for major investment in energy-efficient housing as statistics confirmed that the Government will fail its target of ending fuel poverty by 2016.

The latest figures show that 36 per cent of housing is in urgent disrepair, with 51 per cent of private housing failing the Scottish Housing Quality Standard. The biggest reason for houses failing is ‘Not Energy Efficient’.

Patrick Harvie MSP said: “Energy efficient homes should be a national infrastructure priority and I will continue to press for this to feature in the forthcoming Scottish budget. It would help create thousands of high quality jobs while also tackling fuel poverty.

“We also need college courses and well-paid modern apprenticeships in energy efficiency. Fuel prices and profiteering by the energy companies must be urgently tackled across the UK, but unless the Scottish Government also steps up investment we’ll miss out on the potential for energy efficiency jobs in Scotland.”

Government to invest £224 million to tackle fuel poverty

Deputy First Minister Nicola Sturgeon has announced that the Scottish Government is set to invest millions in a new national fuel poverty scheme. She made the announcement as she launched a campaign aimed at helping people reduce their winter fuel bills.

The Government will shortly be inviting bids for a contract, worth up to £224 million over seven years, to deliver a new national fuel poverty scheme from 2015.

The new scheme will deliver energy efficiency measures such as better insulation and heating systems, helping to create warmer and greener homes for thousands of Scots.

The announcement comes as a campaign is launched encouraging Scots to take advantage of free help which is available now to reduce their winter fuel bills.

The Home Energy Scotland campaign seeks to provide householders with free and impartial advice on support to help cut energy bills, whatever their circumstances.

Launching the campaign, the Deputy First Minister said: “It takes just one phone call to the Home Energy Scotland hotline to see if you can save money on winter fuel bills, and I would encourage people to call the hotline on 0808 808 2282, or visit the HES website.

“Anyone can get energy efficiency advice and find out what’s available to them, and many others can also qualify for energy saving improvements such as insulation, boilers or central heating for free.

“Rising energy bills remain a huge concern for the Scottish Government and fuel poverty is still a major issue in Scotland, with over 27 per cent of households affected.

“It is a scandal that there should be any fuel poverty in an energy-rich country like Scotland, and that is why I am delighted to announce a contract worth up to £224 million over seven years for the delivery of a new national fuel poverty scheme from 2015.

“This will build on the success of the Energy Assistance Scheme, which has provided over 46,000 vulnerable households with heating and/or insulation measures over the past five years.

“This long term contract will help thousands more households over the next few years, and is testament to our commitment to helping Scots escape fuel poverty.”

visit www.homeenergyscotland.org.uk

or call 0808 808 2282 for more information

Scotland needs ‘radical approach’ to tackle fuel poverty

Single markets in electricity and gas covering the whole of Great Britain should continue if Scotland became independent, a new report has said. First Minister Alex Salmond has welcomed the report from the independent Expert Commission on Energy Regulation and said that Scotland needs a ‘radical approach’ to tackle fuel poverty.

The commission, which examined possible regulation of energy markets in an independent Scotland, says independence would give Scotland new powers to tackle fuel poverty, high energy costs and prices. It also highlights that a single GB energy market is the best option for consumers in Scotland, England and Wales.

The Commission’s report will be discussed by industry experts at a meeting of the Scottish Energy Advisory Board (SEAB) in Aberdeen today. Speaking ahead of the meeting the First Minister, said:

“This is a detailed and authoritative report and I am grateful to Robert Armour and his fellow Commissioners for their time, expertise and dedication. The Commission rightly recognises that independence will give Scotland new powers to tackle fuel poverty and reduce the impact of high energy costs and prices.

“This Government will continue to build on all its achievements in delivering energy efficiency and cost effectiveness and continue to improve delivery to disadvantaged and vulnerable consumers. The report rightly highlights that independence will open up new possibilities which could better address Scotland’s energy needs, and recognises that it is in our common interest to share energy resources across our borders.

“Scotland is a resource rich country and it offers safe and secure supplies of electricity and gas, and can continue to assist the rest of the UK in meeting its legally-binding renewable energy targets.

“It’s clear that a strategic energy partnership between our governments after independence represents the best outcome for all concerned and the Commission has clearly identified examples from across Europe – in Ireland, Iberia and Scandinavia – which show that this can be done.”

The Commission, comprising energy industry, consumer experts and academics, and headed by senior counsel and former SCDI chairman Robert Armour, was set up last year to offer independent advice on energy in an independent Scotland. Robert Armour, Chair of the Expert Commission, said:

“In the event of independence there are undoubtedly issues that will have to be settled between the two administrations. We share a common integrated system and have a common interest in energy security. Looking to Europe and beyond we found working models of cross-border partnerships delivering jointly-regulated integrated markets that show single markets can work with goodwill and cooperation.

“Eradicating fuel poverty has proved an intractable challenge. We believe a more radical approach is now needed. We see an opportunity to better target delivery to disadvantaged and vulnerable consumers through accessing data already held on social need. In the future we will be able to take this approach further using the improved data that will come from the roll out of smart meters.

“Scotland’s natural potential makes it a cost-efficient place to develop renewable resources. We see a benefit to both Scotland and the rest of the UK in enabling this economically efficient development of renewable potential to continue.”

The Commission’s report highlights:

A continuing single GB energy market, which the Scottish Government has consistently supported, is the best outcome for consumers and investors in Scotland, England and Wales.
Working models of combined energy markets, built on partnerships between separate countries and Governments, exist across Europe.
An independent Scotland will need its own energy regulator, and that the Scottish Government’s combined regulatory model could successfully deliver this.
The existing costs of renewable support mechanisms at the point of independence should continue to be spread across GB as at present.
Importance of continued efforts and additional measures to tackle fuel poverty and energy efficiency.

Green Yes, the Scottish Green Party’s campaign for a Yes vote in the independence referendum, also welcomed the report recommending that an independent Scotland remain part of the GB-wide market for electricity and gas.

A Green Yes briefing on jobs points out that more than 11,000 people are already employed in the renewables industry and most firms are expecting to grow. Scotland has the offshore engineering skills to make marine renewables a success and create thousands more jobs in construction, grid development and research.

Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy and energy committee, said:

“Energy is an issue that all countries are facing up to, and with our renewables potential Scotland has a chance to generate not just what we need but also energy for export to enable our neighbours to meet their low carbon targets. Encouraging the trading of energy not just within these islands but across the North Sea makes sense, and I see a Scottish Parliament with responsibility for energy policy much more likely to prioritise these issues.

“By contrast Westminster is locking us in to new nuclear with its massive costs and toxic legacy, and a dash for fracked gas that risks our local environment and our carbon budget. What today’s report from the Expert Commission on Energy Regulation underlines is that it’s sensible to co-operate on such a crucial issue but it’s vital that Scotland gets to decide the direction it wants to go in.”

Lazarowicz: Green technology must be at the heart of economic strategy

Mark Lazarowicz MP is calling on the UK and Scottish Governments to realise fully the potential of the green economy to create skilled, long-term jobs at the same time as tackling climate change and fuel poverty.

In a wide ranging essay for the Scottish Fabian Society, the North and Leith MP says the green economy could draw on existing industrial strengths, pointing to local examples in Edinburgh as well as elsewhere in Scotland.

Mark Lazarowicz (pictured above) said: “The financial crisis graphically illustrated the need to rebalance the Scottish and UK economies and we should place the green economy at the heart of our economic strategy.

“For instance, energy to heat your home should not be a luxury and energy efficiency is one of the most important ways to tackle fuel poverty in the long term as well as climate change.

“Green technology also has the potential to be a major export sector, not just in large-scale manufacture of say, wind turbines, but also of the parts required and project design where Scotland already has a wealth of expertise.

“It’s much more than a niche industry: with new rules on recycling and targets for cutting carbon emissions we have to green our economy and Scotland should be leading not lagging behind.”

The MP’s article appears in a new collection of essays by Scottish Labour MPs setting out policy alternatives for a new future for Scotland. It can be found at

http://www.scottishfabians.org.uk/publications/

HEEPS of heat for thousands of city homes

£12M HOME INSULATION SCHEME WILL HELP TACKLE FUEL POVERTY

Up to 3,500 homes in the capital are to be insulated over the next year in a bid to make them cheaper to heat and reduce fuel poverty. Homeowners and private tenants will benefit from an estimated £12m of available funding through the Scottish Government’s Home Energy Efficiency Programme (HEEPS) and funding from the Energy Companies Obligation (ECO).

The £60m fund to help households living in fuel poverty to to make their homes warmer, more environmentally friendly and cheaper to heat was announced by Housing Minister Margaret Burgess earlier this month.

The investment, which is targeted at fuel poor households across Scotland, will be used for the installation of energy efficiency measures such as solid wall, cavity and loft insulation. Around £42 million will be split between the 32 councils while the remaining £18 million will be made available to local authorities to develop larger scale schemes.

Housing and Welfare Minister Margaret Burgess said: “This £60 million investment will help households in fuel poor areas stay warm and reduce their energy bills. In total, the Scottish Government will spend almost a quarter of a billion pounds over a three year period on fuel poverty and energy efficiency.

“Rising energy bills remain a huge concern for this government. Today’s funding will see thousands of homes across Scotland receive new measures like solid wall insulation and help to drive down the number of people living in fuel poverty.

“This funding will be distributed across all of Scotland’s local authorities, including our rural and island areas and will include specific provision for households in rural areas currently finding it difficult to access the measures.

“The investment will also support and sustain the insulation industry in Scotland, generating work and supporting jobs.

“We are doing everything we can within our limited powers to provide a wide range of energy efficiency measures to individual households and to local authorities.

“We are actively working with councils and energy companies to ensure that Scotland continues to get its fair share of funding for efficiency programmes like these.

“Only with the full powers of independence can we fully tackle all the causes of fuel poverty. We made our position clear about how ECO and Warm Homes Discount would be funded in an independent Scotland. These costs would be met by central resources. Based on current arrangements this would reduce energy bills by around five per cent – or around £70 per year.”

Liz Marquis, the director of the Energy Agency which manages the energy efficiency measures in South Ayrshire, said: “The installation of energy efficiency measures such as external wall insulation makes a huge difference to people struggling to pay their fuel bills.

“The continued support from the Scottish Government is vital to help people in properties which are particularly difficult to heat. Combined with effective energy advice and support, these locally-delivered programmes are well proven to remove households from fuel poverty. The funding also stimulates the insulation industry providing valuable jobs and support for our communities.”

In Edinburgh, the city council, working with the Energy Savings Trust and Changeworks, will provide loft and cavity wall insulation to thousands of households across the capital who are at risk of being affected by fuel poverty.

Private homes are, on average, less energy-efficient than Council homes and have poorer energy performance ratings. Council tenants benefit from a comprehensive investment programme which has seen around £30m invested over the last five years in improving the energy efficiency of Council homes.

Housing Convener Cllr Cammy Day said: “The rising cost of heating is hitting poorer households hard. This initiative will make a major contribution to making homes for some of the worst affected households cheaper to heat. This initiative is a major part of the Coalition’s commitment to ensuring that the city’s people are well housed in quality accommodation, whether this is within our own stock or in privately owned homes.”

Householders who would like to know more about this and other Scottish Government funded offers can contact the Scottish Government’s Home Energy Scotland hotline on 0808 808 2282 or visit www.homeenergyscotland.org.

Financial support to help cut your energy bills

The worst of winter may at last be over, but with sky-high utility bills dropping through the letterbox people across Scotland are being urged to seek assistance to improve the energy efficiency of their homes, helping to reduce household energy bills.

Housing and Welfare Minister Margaret Burgess has outlined that households can apply for financial assistance from the Scottish Government of up to £1,200 to pay for energy improvement measures such as cavity and loft insulation, double glazing, a new boiler or draft proofing.

Getting loft insulation can reduce energy bills by up to £175 per year, while replacing single-glazed windows with double glazed ones could save the average home around £165 per year. And taking simple steps to draught proof can cut £55 per year off the average property’s energy bill, while getting a new, energy efficient boiler could save a three bedroom home owner up to £300 annually.

Mrs Burgess said: “It is my belief that everyone in Scotland should live in a warm and safe home that doesn’t cost the earth to heat. In these current economic times, it is more important than ever that people take advantage of money saving opportunities like these when they can.

“Rising energy bills are a huge concern for this government, and fuel poverty is an absolute scandal in a country like Scotland. There is a wide range of financial support and offers available to Scottish households to support them when it comes to making the decision that is right for them.

“As well as perhaps being eligible for up to £400 towards the cost of a new boiler, householders could access up to £500 towards the cost of insulation measures, and up to £300 towards other measures such as double glazing or draft proofing if recommended as part of a Green Deal assessment. I would urge anyone who would like to reduce their energy bills to contact the Hotline as soon as possible to find out about how to get a Green Deal assessment and to find out about the offers available to them.”

You can find out more and apply for a Green Homes Cashback voucher by visiting

www.energysavingtrust.org.uk/scotland

or by calling the Scottish Government’s Home Energy Scotland free hotline on 0800 512 012.

Learn about collective switching to cut your energy bills

Are you paying too much for gas and electricity? Like to find out what you can do to change that? Then read on …

Scots Together offers householders and their communities the chance to save hundreds of pounds on energy bills as part of a collective buying initiative. Scots Together is currently the only Scottish pilot to be funded by the Department of Energy and Climate Change.

Representatives from the Scots Together initative will be at Community Renewal’s office in Pennywell Court (i.e. the shops!) tomorrow (Tuesday) from 2 – 5pm to talk about collective switching.

Organisers explained: ‘Collective switching involves getting people together to sign up to reviewing their electricity and gas tariffs, making sure they are on the best deal that they can get. Many people continue paying expensive tariffs simply because they don’t realise they can switch their supplier for gas and electricity. Reviewing your energy tariffs should be something you do as simply and regularly as reviewing your home or car insurance.

There will be options provided to each customer including, the price obtained through the collective switch auction, a comparison of the whole market and a greener tariff.

There will be no obligation to switch suppliers and we’ll let you know if you are already on the best tariff for you’.

Interested? Call in at Community Renewal tomorrow afternoon or you can get more info online – check out www.ScotsTogether.com

More face fuel poverty despite Holyrood help

Basic energy efficiency measures have prevented up to 35,000 Scottish households from falling into fuel poverty over the past year, according to the Scottish government.

Statistics released today show that the installation of measures such as loft and cavity insulation, double glazing and new boilers have helped to reduce energy consumption, greenhouse gas emissions and cut household energy requirements.

In spite of efforts by the Scottish Government to help reduce household energy bills, tens of thousands of families were pushed into fuel poverty in 2011 as a direct result of energy company price rises. Between July and October 2011, more than 102,000 households fell into this category after energy prices increased by 14%.

Housing and Welfare Minister Margaret Burgess said: “Basic energy efficiency measures can make a huge difference to Scottish families who are struggling to make ends meet, allowing them to heat their homes more cost effectively.

“This government has allocated over £68 million in 2012-13 to energy efficiency and fuel poverty programmes to help individuals and families who are in most need of support. We also have in place a cashback voucher scheme offering up to £500 per household for energy efficiency measures such as double glazing and loft and cavity wall insulation, and from today, energy efficient boilers and appliances for private sector landlords.

“Rising energy bills are a huge concern for this government, and fuel poverty is an absolute scandal in an energy rich country like Scotland. The more that energy companies continue to implement punishing price increases, the more they are undoing the good work we are doing to tackle fuel poverty. That is why we are urging the UK government – who has responsibility in this area – to do more to help vulnerable people and ensure that our households are better protected.”

However the Scottish Greens believe the government should be doing a lot more to address the problem, and they are calling on ministers to stop hand-wringing on the worsening issue of fuel poverty. The Scottish Greens say the National Retrofit Programme to insulate homes – first proposed by the party in 2009 – needs to be increased from the current £65million a year to at least £100 million to make a real difference.

Green MSP for Lothian and Holyrood energy committee member Alison Johnstone said:
“Scottish Greens have long argued for extra money focused on rapid upgrading of peoples’ homes. For SNP ministers to suggest this issue is worsening despite their efforts hides the fact that they could do much more.

“With thousands more homes in fuel poverty, the Scottish Government must be more ambitious. Wringing hands about Westminster’s failure to tackle the Big Six energy companies isn’t good enough.”

The Scottish Government’s latest figures show that recent energy price rises have pushed an extra 26,000 households in Scotland into fuel poverty. Around 29 per cent of Scottish households now spend over 10 per cent of their income on energy bills, and 185,000 of those households spend over 20 per cent.

Commenting on the figures, Norman Kerr, Director of national fuel poverty charity Energy Action Scotland said: “The fact that more Scottish households are now in fuel poverty is very disappointing but not surprising, as energy prices have gone up and people’s budgets generally are under pressure. Efforts to make homes energy efficient, so that less energy is needed to heat them, are more vital than ever and will clearly have to be increased.

“Our advice to the public is to check out if they are on the best fuel tariff and payment method for their needs, to shop around energy suppliers, and to take up the free or discounted insulation from Scottish Government programmes such as Home Energy Scotland. There is a tendency to think it won’t make a difference, but it does all help at these difficult times.”

Energy Action Scotland is highlighting that the figures released today are for the period to autumn 2011. Using those figures and adding the effects of energy price rises announced in autumn this year, the numbers living in fuel poverty today are more likely to be around 900,000 household (40%). Today’s report states that those on the lowest incomes are hit hardest by the price rises.

Lottery cash extends financial inclusion project

Port of Leith Housing Association (PoLHA) is one of five Edinburgh housing associations to benefit from Big Lottery Funding to continue the Financial Inclusion Project (FIP) until 2017.

FIP is a partnership project between Port of Leith, Castle Rock Edinvar, Dunedin Canmore, Hillcrest and Margaret Blackwood housing associations and the Edinburgh Citizens’ Advice Bureau. The programme, which enables the CAB to second money advice staff to the housing associations to provide financial and debt management advice, was established in January 2007.

Fiona Neilson runs the programme at PoLHA. Last year she helped over 130 tenants bringing them almost £75,000 of additional income. She said: “It is fantastic that funding has been secured to continue with this programme which has already helped hundreds of Edinburgh families manage their finances and bring a positive change in their lives. The project will now be funded until it celebrates its milestone tenth birthday – this shows what a success it has been and we are confident will continue to be.”

PoLHA, which has over 3000 tenants in North Edinburgh, also works with energy charity Changeworks to help tenants manage energy costs and efficiency, as well as a number of other support services.

Keith Anderson, Chief Executive at PoLHA, said: “This programme has been a major success and I am delighted this can now continue for a further four years. The changes effective money management can bring to families will help to ease pressure and worry and build confidence and skills.”