Sunday 6 July 2008

Watchdog will probe high cost of our electricity

THE energy watchdog is to probe why Welsh consumers are paying more for their electricity than the rest of the UK.

Ofgem says it will examine the situation in Wales as part of an investigation into the energy supply market following lobbying by Environment Minister Jane Davidson.

Independent research commissioned by consumer watchdog Energywatch found Welsh consumers typically pay £408 – 3% more than the £396 charged in Scotland, and 7% more than the average £381 paid in England.

And customers in South Wales pay around 5% more for electricity than North Wales – equivalent to an extra £20 per year on bills.

Around 240,000 households in Wales are believed to be in a state of fuel poverty – spending more than 10% of income on fuel.

Victoria Winckler, director of the Tredegar-based Bevan Foundation, said children in such homes were more likely to suffer from asthma and chest infections.

She said: “The number of households that are affected is appalling.

“What’s clear is fuel poverty is caused by a vicious mixture of things – high fuel prices, inefficiently heated homes and low incomes.”

Ms Davidson said: “At a time when more people are at risk of fuel poverty due to rising prices it is important that Ofgem looks at regional price differences to ensure that Welsh consumers are charged the same as other parts of the UK.
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