Sep 12 - Herald, The; Glasgow (UK)

By MICHAEL SETTLE and GERRY BRAIDEN

GORDON Brown's GBP1bn energy aid package ran into trouble last night after it was derided as "too little, too late" and fears were raised that funding costs would ultimately be passed from the energy companies to consumers.

The Scottish Government expressed disappointment that there was no new money coming from the Treasury and pledged Scotland would get "its fair share of additional resources" .

As the Prime Minister rejected calls from Labour back benchers and trade union chiefs to slap a windfall tax on the multi-billion profits of the power giants, a poll for Channel 4 News of 60 key marginals reinforced the political hole Mr Brown finds himself in by suggesting Labour would lose them all and the Tories would win a landslide victory .

While the UK Government estimated up to 11 million homes could benefit by more than GBP300 a year as a result of the expansion of energy efficiency measures concerns were raised that ew people would benefit in time for this winter.

The Prime Minister declared:

"Our objective is nothing less than a sea-change in energy efficiency and consumption at the same time as helping the most vulnerable families this winter."

The energy companies are obliged to pay GBP910m from now to 2011 through two schemes to help people reduce fuel bills.

The majority of the money, GBP560m, will be spent using the existing Carbon Emissions Reduction Target programme, whereby the power companies provide energy efficiency measures to households while reducing their carbon footprints.

The remainder, GBP350m, will go through a UK-wide Community Energy Saving Programme, involving local councils, which will help pinpoint fuel-poor households in deprived areas.

Low-income households such as pensioners will be entitled to the energy efficiency measures for free while others will get them half- price. Households on pre-payment meters will not face higher tariffs and, in the event of "severe" weather cold weather payments will increase from GBP8.50 to GBP25 a week.

Mr Brown said: "We want to keep energy bills as low as possible and I do not expect the GBP910m that we raise to be passed on to the consumer by the energy companies."

David Porter from the Association of Electricity Producers branded the PM's statement "too sweeping".

"They will try to contain this because they have to but it remains to be seen just how much of it ends up on the customers' bill in the longer run, " he said "The large energy companies have made it clear they will not want to pass on these costs to customers."

Mike Weir for the SNP said Mr Brown had "delivered a chilly response to the one million Scots in fuel poverty" and, by ruling out immediate help through a windfall tax, had consigned thousands of Scottish households to a bleak winter.

LibDem leader Nick Clegg described the measures as "baby steps in the right direction" . Tony Woodley of Unite pledged to make the call for a windfall tax a central issue at the Labour Party conference later this month .

Energywatch, the gas and electricity watchdog, branded it "too little too late". Child Poverty Action in Scotland argued it did not go far enough .

Poverty Alliance Scotland broadly welcomed Mr Brown's proposals but asked: "How much will be spent in Scotland?"

Help The Aged's spokesman in Scotland, Lindsay Scott, described the plans as " failing to meet the needs of older people who need help right now".

He said: "Without addressing the immediate concerns, which a windfall tax would've done, this is little more than tinkering."


Originally published by Newsquest Media Group.

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