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Journal Articles
June 2002
Article
Left out in the cold? New energy tariffs, low-income households and the fuel poor
Type: Journal Articles
Authors: Bennett, M, Cooke, D and Catherine Waddams-Price
ISSN: Print: 0143-5671; Online: 1475-5890
Volume, issue, pages: Vol. 23, No. 2, pp. 167-194
JEL classification: L500, L900, D210
Keywords: Fuel charges, household welfare
Non-member price: £15

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Two new gas tariffs were introduced in 2000, with contrasting effects. One abolished a fixed standing charge, while the other, specifically targeted at low-income consumers, introduced a preset charge, independent of fuel consumption, for eligible consumers. We analyse the effect of the abolition of the standing charge on different household groups, including the fuel poor, the current focus of government and regulatory policy. We find that while low-income groups have benefited more than others from abolition of the standing charge, the fuel poor have gained less than average. We contrast this with the other targeted preset charge scheme.

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