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Fuel bills deal being finalised Fuel bills deal being finalised
(about 4 hours later)
A deal between the government and energy companies to reduce household bills is close to being finalised. Ministers are putting the finishing touches to a fuel poverty package - but without the windfall tax on energy companies demanded by the unions.
The measures are expected to provide the poorest customers with better home insulation and help in finding the best gas and electricity tariffs. More than 10 million households are expected to be offered help to cut bills through loft insulation, double glazing and other measures.
Union leaders have called on the prime minister to impose a windfall tax on energy companies' profits. Customers will also get help in finding the best gas and electricity tariffs.
But ministers say making homes more efficient is a better long-term solution to cutting bills. The government says such measures are a more long-term solution to cutting bills than one-off payments.
The package of measures is expected to include better insulation of all homes over the next 10 years and targeted help for the poorest to ensure they can access the best fuel deals on offer.
It is understood that the energy companies will also make increased contributions to the government's carbon emissions reduction targets scheme.It is understood that the energy companies will also make increased contributions to the government's carbon emissions reduction targets scheme.
The £1bn package is expected to be unveiled on Thursday after weeks of negotiations with the energy companies.
'Crackpots'
But it is likely to prompt fresh calls from the unions and many Labour MPs for a windfall tax on the energy companies' profits.
Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter Tony Woodley Joint General Secretary, Unite
Tony Woodley, joint leader of Britain's biggest trade union, Unite, said people needed immediate relief from soaring prices.
"This can't be addressed by lagging the loft as some crackpots around the prime minister have suggested," he told the TUC conference in Brighton on Tuesday.
"Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter."
Mr Woodley claims the oil companies will make an extra £15bn out of the British public over the over the next four years.
HAVE YOUR SAY The fuel companies will sign up but they will drag their heals in implementing any change Fred Harris, Irchester Send us your comments
But Chancellor Alistair Darling cautioned against a windfall tax, saying the government's ambitions to invest in green energy and alternatives to oil and gas depended on "continuous investment over many years" from the power companies.
He told TUC delegates: "We have to strike a balance between long-term investment and helping people, particularly people really feeling the squeeze as a result of gas and electricity prices."
Warmer receptionWarmer reception
BBC political correspondent Jo Coburn said the deal has taken weeks, if not months, to put together, but may not satisfy union leaders who want government money to go directly to cutting bills. The TUC has backed a motion criticising energy companies and urging the government to impose a windfall tax.
She added that Prime Minister Gordon Brown hoped the deal would be enough to generate a warmer reception from delegates at the Labour Party's annual conference in two weeks' time.
On Tuesday, the TUC's annual conference in Brighton backed a motion criticising energy companies and urging the government to impose a windfall tax.
It criticised the "big six" energy firms for making £1.6bn last year and raising prices by 42% this year.It criticised the "big six" energy firms for making £1.6bn last year and raising prices by 42% this year.
A report published on Monday suggested almost a quarter of the population will be pushed into fuel poverty by the end of next year.A report published on Monday suggested almost a quarter of the population will be pushed into fuel poverty by the end of next year.
The National Housing Federation said by the end of 2009, 5.7 million UK households will be spending at least 10% of their income on energy bills.The National Housing Federation said by the end of 2009, 5.7 million UK households will be spending at least 10% of their income on energy bills.
Average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900.
 Average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900.
Would you welcome a deal between the government and energy companies? What do you want to see in the package of measures? Send us your comments using the form below.
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