EU directive 'would leave poor shivering'

By ibell

THE poorest families could be left "shivering in their beds" if a new EU directive gets the go-ahead, campaigners have warned.

The Taxpayers' Alliance and Global Vision claim the EU Renewables Directive would drive up electricity costs, harm the economy and increase fuel poverty.

A study by economist Ruth Lea found that the potential costs of the directive would be "unsustainably high for consumers, businesses and the economy as a whole".

It comes as a committee of MPs warns the Government must step up investment in gas storage and new electricity-generating to prevent a future "energy crunch".

Thousands of Westcountry homeowners have been hit with two inflation-busting bill rises this year as the cost of wholesale electricity and gas soared on the back of oil's increase.

But energy firms have come under fire in recent weeks for failing to pass on falls in wholesale fuel costs to customers.

Energy Secretary Ed Miliband has urged companies to pass on consequent cuts in gas bills "as soon as possible".

He also criticised the treatment of some customers forced to pay higher charges because they used pre-payment meters or could only be served by a single supplier, warning that the Government would take action to stamp out unfair charging.

However, Ms Lea's report warns that the annual extra cost of the Renewables Directive to the average family electricity bill could be as high as £120 for each of the 20 years up to 2030.

Ms Lea said: "It is quite clear that the EU's Renewables Directive will significantly push up electricity prices. There'll be a double-whammy.

"People, especially the less well-off and pensioners, will find their bills inexorably continuing to rise.

"And industry, especially the high energy-using sectors, will simply migrate overseas and jobs will be lost in Britain.

"Pressing blindly ahead with this scheme will seriously harm the economy and leave pensioners shivering in their beds."

The National Pensioners Convention has also called on the Government to take immediate action to tackle the rising number of winter deaths among the country's elderly.

However, a spokesman for the Department for Energy and Climate Change said: "Costs for energy in all its forms are increasing, right around the world.

"The challenge for us is to ensure the UK has a secure and affordable supply of sustainable energy.

"A dramatic increase in renewable energy alongside new nuclear and carbon capture and storage will help in the fight against the damaging effects of climate change.

"We expect little impact to consumer bills in the short-term. However, there could be increases in the medium to long-term.

"This is why helping those in fuel poverty and doing more to help people save energy are key priorities for the Government."