Oil prices are coming down because of the global economic crisis but it is likely to be several months before there is any impact on the cost of fuel. That is because the energy companies said they held off passing on the hike in wholesale prices to customers. By the same token, they say it will take time to pass on the benefit of falling prices on grounds that they need to provide stability within their business. This spells cold comfort for Scottish households this winter, particularly if the weather is to be harsh.
Oil prices are coming down because of the global economic crisis but it is likely to be several months before there is any impact on the cost of fuel. That is because the energy companies said they held off passing on the hike in wholesale prices to customers. By the same token, they say it will take time to pass on the benefit of falling prices on grounds that they need to provide stability within their business. This spells cold comfort for Scottish households this winter, particularly if the weather is to be harsh.
The extent of the difficulties facing people is illustrated by the publication yesterday of official Scottish Government figures showing that 24.6% of households are in fuel poverty, defined as an outlay of at least 10% of income on fuel. The figure, for 2007, reveals a plus-11 percentage point increase on 2002. The Scottish House Condition Survey also revealed that 163,000 households were extremely fuel poor, with more than 20% of income going on heating, lighting and cooking. The figures highlight the extent of the challenge facing the SNP government, which has made a pledge to eradicate fuel poverty in eight years. First, it must reverse a trend in fuel poverty that is heading in the wrong direction. It is surprising, baffling even, that this should be the trend, given the focus on energy efficiency.
An explanation can in large part be found in other figures in the survey: 79% of homes needed some form of repair, the need being urgent in 49% of homes. There are high standards for insulation and energy efficiency for new-build but we cannot rely on new housing replacing old to abolish fuel poverty, especially heading into a recession that has already hit the building sector hard. The response must be two-pronged.
First, the programme involving the energy suppliers to insulate homes must be completed as promptly as possible. Repairing housing stock must be done as a matter of urgency. The Scottish Government has provided extra funding for the central heating programme for pensioners and will give local authorities greater flexibility to help with house repairs. There will be a greater focus on energy efficiency and the condition of property as of next week when Home Reports will be a compulsory part of the process for selling a house. There are aspects of Home Reports that are positive but the difficulty in securing a loan could add to the problems for a seller who needs to upgrade a property. Pensioners and households with disabled people are particularly vulnerable to fuel poverty. A range of measures from the Westminster and Holyrood governments is intended to ease the burden of fuel poverty but the new figures underline the fact that eradicating it is a challenge that cannot be taken at all lightly.
