Deal to reduce fuel bills near finalisation

10 September 2008

Ministers want to make homes more energy efficient

A deal between the government and energy companies to lower household energy bills is nearing finalisation.

Measures forming part of the deal are expected to give the poorest customers better insulation for their homes and help so they can find the cheapest gas and electricity deals.

Union leaders have been pushing for the prime minister to impose a new windfall tax on energy companies’ profits.

However the government say that a longer-term solution to reduce energy bills is to make customers’ homes more energy efficient.

The measures incorporated in the deal are likely to include the provision of better insulation for all homes during the course of the next 10 years and specifically targeted help for the most vulnerable of customers so that they have access to the cheapest energy tariffs on offer.

Another element of the deal is likely to be increased contributions from the energy companies to the governments carbon emissions reduction targets (CERT) scheme.

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