London (Platts)--23Apr2008

Major UK energy retailers, government ministers and charities will meet
in London Wednesday to discuss the issue of fuel poverty at a major summit.
Most UK households have already been hit with gas and power bills
increasing by around 15% earlier this year, as the six big retailers all
raised their household prices to account for an increase in the wholesale
energy markets.

UK media reports have now suggested that the retailers might look to
increase prices by as much as another 25%.

Soaring energy prices are making it hard for some poorer households to
afford the energy they need to cook their food and keep warm.

The UK government is expected to miss its legally binding target to
remove vulnerable households from fuel poverty--where more than 10% of income
is spent on energy--by 2010.

In fact Friends of the Earth and Help the Aged are suing the government
in the expectation it will miss its legally binding target.

Energy retailers recently agreed to voluntarily increase their spending
on "social tariffs"--low price fuel for the poor--to GBP150 million/year ($300
million) from GBP50 million/year. But some critics say that is too little and
too late.
Energy regulator Ofgem is expected to issue a statement about the summit
later.