Thursday, December 15, 2005

[UK] Many Britons facing “fuel poverty” this winter, warns MPs report

From VIP News

ONDON - The House of Commons Trade and Industry Committee has warned that gas shortages in this winter will interrupt supply for businesses and could push the elderly as well as disabled people into "fuel poverty."

The report also said that this problem would extend to the next winter as well since the prevailing conditions are unusually cold. "It is very likely that the largest industrial and commercial customers will, if they have the relevant contracts, suffer interruptions, or, if they purchase gas on the spot market, have to pay very high prices for that gas, or both," the report said.

Prices in the country have touched record highs amid worries about a shortage as the winter sets in. Weather forecasters have predicted that this will be the coldest winter in over a decade.

There is a distinct lack of supply from mainland Europe and the domestic production has been hit by the diminishing reserves in the North Sea. Chancellor Gordon Brown's decision to raise the supplementary tax rate, much to the fury of oil traders, will also not help matters.

The report titled "Inquiry into Security of Gas Supply" says that even though major energy suppliers in the country have hiked their bills by 15 percent, the main worry is the lack of supply rather than rising bills.

"If fuel prices continue to rise it will be essential to provide further assistance to the elderly," the report warns. Fuel poverty is a state where a consumer spends more than 10 percent of his/her income to avail warmth in the winter.

The committee urged the government to take steps to open up the European market to ensure steady supplies, "The problem is caused not only by matters outside the control of government, but also by a legacy of slow development of infrastructure, and the lack of a true European market for gas." The committee concluded by calling for the relaxation of emission norms as well as granting licenses so that companies could use alternative fuels for their needs.

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