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Targeted Energy Tariff Urged to Cut Fuel Poverty, New UK Report Finds

Modelling for Ovo projects greater impact than existing discounts at current spending.

Overview

  • A Green Alliance report for Ovo outlines three costed designs, including a same-cost option using the current £2.25 billion that cuts fuel poverty by 12%, a tiered model that delivers 19% or 26% with higher rental standards, and a highly targeted version that achieves 42%.
  • The proposal focuses on households with unavoidable high energy needs, such as older people, disabled residents and high-occupancy homes, identified using existing public and private data.
  • Polling of 1,014 UK adults by Strand Partners shows 67% support for introducing a social tariff.
  • Ministers have not adopted the plan, as Ovo and campaigners press for swift action with nine million households classed as fuel poor and an extra £407 needed in 2024 to escape poverty.
  • Separately, Ovo announced a £56 million support package from 1 October offering vulnerable customers free heated blankets, energy-saving devices and home upgrades.