UK: September 12, 2008


LONDON - Gordon Brown has unveiled a one billion pound, three-year energy-saving initiative to help those struggling to pay soaring fuel bills.


The six major energy suppliers will contribute to the package but will not be hit by a windfall tax on their profits. Brown told reporters on Thursday.

"I believe this combines the different objectives that we have got to meet," he said.

"First of all, we want to keep energy bills as low as possible and I do not expect the 910 million pounds that we raise to be passed on to the consumer by the energy companies.

"We want to maintain high levels of investment in future energy capacity."

Environment Secretary Hilary Benn said pensioners and people on low incomes or benefits would receive free loft and cavity wall insulation, while others would receive a 50 percent discount.

(reporting by Frank Prenesti; Editing by Jeremy Lovell)


REUTERS NEWS SERVICE