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Poverty warning over fuel hikes Poverty warning over fuel hikes
(20 minutes later)
Soaring fuel bills this winter could lead to a sharp rise in the number of people struggling to pay for heating, an independent energy broker says.Soaring fuel bills this winter could lead to a sharp rise in the number of people struggling to pay for heating, an independent energy broker says.
Catalyst Commercial Services expects domestic gas and electricity bills to rise by as much as 10% by January.Catalyst Commercial Services expects domestic gas and electricity bills to rise by as much as 10% by January.
It says this could push 400,000 more households into "fuel poverty" - when the cost of heating accounts for 10% or more of household income.It says this could push 400,000 more households into "fuel poverty" - when the cost of heating accounts for 10% or more of household income.
The government says grants are available to help with fuel bills.The government says grants are available to help with fuel bills.
People are more likely to die of the cold in this country than they are in colder countries John SimpsonPeople are more likely to die of the cold in this country than they are in colder countries John Simpson
An estimated 3.5 million homes in the UK are already defined as being in fuel poverty.An estimated 3.5 million homes in the UK are already defined as being in fuel poverty.
The government admits a big drop a few years ago has been reversed and now more people are falling into this group.The government admits a big drop a few years ago has been reversed and now more people are falling into this group.
Charities say a rise in the numbers affected by fuel poverty could have tragic consequences. John Simpson, of National Energy Action, says: "We have, in this country, between 25,000 and 45,000 excess winter deaths, which is due to cold homes.Charities say a rise in the numbers affected by fuel poverty could have tragic consequences. John Simpson, of National Energy Action, says: "We have, in this country, between 25,000 and 45,000 excess winter deaths, which is due to cold homes.
"Colder countries, like Scandinavian countries and Germany, don't have that sort of level, so people are more likely to die of the cold in this country than they are in colder countries.""Colder countries, like Scandinavian countries and Germany, don't have that sort of level, so people are more likely to die of the cold in this country than they are in colder countries."
He told BBC News many vulnerable people did not realise they are entitled to grants to help them insulate their homes and pay for fuel and called on the government to do more to combat fuel poverty.He told BBC News many vulnerable people did not realise they are entitled to grants to help them insulate their homes and pay for fuel and called on the government to do more to combat fuel poverty.
'Help available''Help available'
Energy Minister Malcolm Wicks said: "Obviously the numbers suffering from fuel poverty is sensitive to whether prices go up or down.Energy Minister Malcolm Wicks said: "Obviously the numbers suffering from fuel poverty is sensitive to whether prices go up or down.
"If they go up 1% it could be another 40,000 people classified as fuel poor.""If they go up 1% it could be another 40,000 people classified as fuel poor."
He said the government was determined to work with fuel companies and voluntary organisations to make sure that the most vulnerable households benefited from the help which was available, such as energy efficiency schemes and winter fuel payments.He said the government was determined to work with fuel companies and voluntary organisations to make sure that the most vulnerable households benefited from the help which was available, such as energy efficiency schemes and winter fuel payments.
HAVE YOUR SAY Energy bills are so erratic anyone could be affected GA, Kent Send us your comments
Catalyst Commercial Services tracks and analyses energy prices in the UK.Catalyst Commercial Services tracks and analyses energy prices in the UK.
Operations director Chris Hurcombe said domestic energy prices had been falling after steep rises during 2006, with further falls expected.Operations director Chris Hurcombe said domestic energy prices had been falling after steep rises during 2006, with further falls expected.
However, with oil prices at an all-time high and wholesale gas prices also rising again at an "unprecedented rate", domestic bills look set to rise with them.However, with oil prices at an all-time high and wholesale gas prices also rising again at an "unprecedented rate", domestic bills look set to rise with them.
Cold winter expectedCold winter expected
He says gas prices have started going up again because of an increase in worldwide demand, combined with a faster than expected decline North Sea gas supplies, which has meant the UK has had to import more gas from Europe.He says gas prices have started going up again because of an increase in worldwide demand, combined with a faster than expected decline North Sea gas supplies, which has meant the UK has had to import more gas from Europe.
Electricity prices are also affected by gas wholesale rates as much of the UK's electricity is produced by gas-fired power stations. WHOLESALE FUEL PRICE RISES Gas: Up 14% since SeptemberElectricity: Up 18% since SeptemberCoal: Up 100% since June Source: Energy Retail AssociationElectricity prices are also affected by gas wholesale rates as much of the UK's electricity is produced by gas-fired power stations. WHOLESALE FUEL PRICE RISES Gas: Up 14% since SeptemberElectricity: Up 18% since SeptemberCoal: Up 100% since June Source: Energy Retail Association
The Energy Retail Association said the wholesale price of gas and electricity was rising, though suppliers had not yet announced price rises for domestic customers.The Energy Retail Association said the wholesale price of gas and electricity was rising, though suppliers had not yet announced price rises for domestic customers.
The wholesale price of coal has also risen, doubling over the last six months to reach an all-time high of $120 (£58.66) per tonne.The wholesale price of coal has also risen, doubling over the last six months to reach an all-time high of $120 (£58.66) per tonne.
Other operating costs for suppliers, including the price of buying carbon in the EU's carbon trading scheme, were also rising, adding to pressure to increase prices for domestic customers.Other operating costs for suppliers, including the price of buying carbon in the EU's carbon trading scheme, were also rising, adding to pressure to increase prices for domestic customers.
Chief executive Duncan Sedgewick told BBC News: "Oil is at an all-time high, up towards $100 [£48.88] a barrel. And even more worrying, perhaps, coal prices have actually doubled in the course of the last six months.Chief executive Duncan Sedgewick told BBC News: "Oil is at an all-time high, up towards $100 [£48.88] a barrel. And even more worrying, perhaps, coal prices have actually doubled in the course of the last six months.
"So, unfortunately, things aren't looking good but we do have a very competitive market and in the competitive market, the retailers will always be trying to see what they can do.""So, unfortunately, things aren't looking good but we do have a very competitive market and in the competitive market, the retailers will always be trying to see what they can do."
Mr Hurcombe says a predicted cold winter will compound the problem by causing demand to rise.Mr Hurcombe says a predicted cold winter will compound the problem by causing demand to rise.
The Met Office is forecasting that this winter will be colder than last.The Met Office is forecasting that this winter will be colder than last.
There is a range of schemes run by central and local government to help people on low incomes improve energy efficiency and pay for fuel.There is a range of schemes run by central and local government to help people on low incomes improve energy efficiency and pay for fuel.
In addition, households with members over 60 are entitled to Winter Fuel Payments worth £200 a year, or £300 for households with members aged 80 or over.In addition, households with members over 60 are entitled to Winter Fuel Payments worth £200 a year, or £300 for households with members aged 80 or over.