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The Committee considered report PSEG/31/16 on Fuel Poverty, together with a PowerPoint presentation from Paul Hinsley, Acting Head of Environment Team.
In October 2014 a motion on Fuel Poverty was referred by full Council to Councillor Walsh as the former Chairman of the Scrutiny Board. A copy of the motion was attached at Appendix A to the report, and a literature review at Appendix B. More recently the Scrutiny Board had referred the motion to this Scrutiny Committee.
In response the Committee’s briefing had been organised by way of a progress report about work undertaken by Essex County Council and its partners on action being taken to address fuel poverty across Essex.
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In his presentation Mr Hinsley confirmed:
- A household is considered to be fuel poor if its required fuel costs are above average (the national median level); and, if the residents were to spend that amount, then they would be left with a residual income below the official poverty line.
- 21% of all households living in properties with the lowest energy ratings (E, F or G) are fuel poor. This is compared to only 2% of households that live in properties with the highest energy ratings (A, B or C).
- 20% of households in the private rented sector are fuel poor.
- 78% of households in fuel poverty are classed as vulnerable, that is one containing children, the elderly, or someone with a long term illness or disability.
- An overview of fuel poverty in Essex, including a district by district breakdown. It was pointed out that fuel poverty was high in rural areas.
- Current differences in tariffs including for those who are on pre-pay meters.
The action being taken in Essex to address the issue and make residents aware of the options available to them.
- Future opportunities e.g. Essex Energy Partnership, Community Energy Schemes, and sharing best practice with District and Borough Councils.
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The Committee discussed their concerns about the issue of energy companies charging customers higher rates when on pre-paid meter schemes, which was linked to such customers being considered to be "high risk" with low credit ratings. The Committee felt strongly that this was both unfair and disproportionate. However, attention was drawn to the fact that prepayment tariffs are being phased out and replaced by smart meters.
The Committee took the opportunity to discuss energy switching and whether or not customers are aware of their options by the energy providers. It was felt that Councillors, working in partnership, could help to make residents and their communities more aware of the options open to them to reduce their fuel bills.
In summary the Committee agreed that it would be helpful if Members could be advised on how they could raise their local residents’ awareness of the benefits of reviewing their own household fuel tariffs, and the replacement of pre-payment meters.
On behalf of the Committee, the Chairman thanked Paul Hinsley for a very informative and interesting briefing on fuel poverty in Essex.