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Fuel poor | The filth columnist

TFC continues his pursuit of the real motives that lurk within the world of CSR. This week he turns on power.

Here's a question for you. How much responsibility does a company have to its customers? By this I mean is it fair that customers should expect a business who sells them a product or service to take an interest in their well being when using that purchased product? If the product if faulty, it can be returned - if it creates a damaging situation (for example when TFC's  parents' TV blew up in the 80s and subsequently nearly burnt their house down) they can be taken to court.

So here's an interesting situation. When a gas supplier hikes up prices by 20%, why does no one point out their responsibility to those customers who can not afford to pay - the "fuel poor?" In times gone by the idea of people freezing to death as a result of not being able to turn on their heating, was a common news item.  I would ask should we be concerned that power companies continue to make record profits, but seem not to be taking this responsibility to their customers particularly seriously.

It could be a cunning plan to reduce global warming, as we will all burn less expensive fuel in our boilers, but I wonder what would have happened if these recent hikes had been announced in the middle of winter instead of our recent mini heat wave? Humans, after all, tend to put off until tomorrow what they need to worry about today. By the time we get to winter most people will have forgotten about recent increases. I'm sure that when pensioners start to die from hypothermia people will start to wonder why.

Is the government culpable? Possibly yes. Soaring oil prices mean that they have received a £500 Million windfall from tax payers in VAT and fuel tax. The Treasury reckons that in real terms fuel duty has fallen by 16 per cent since 1999. Try telling that to anyone filling up their car today!. What's more, the government is adding a 2p rise in fuel duty in October and analysts predict petrol will reach £150 a litre by September. I don't get how this is actually cheaper than before. Can someone please explain.

When petrol goes up, the Treasury is laughing, as fuel duty remains a percentage of a higher price (rather that a flat figure). When gas goes up VAT makes sure that the Treasury remains in a humorous state. But the population, the customers, the people that the suppliers have a responsibility to, are not laughing.

I suggest therefore that we need to collectively address this issue. The UK's power market has many overseas influences - not least those foreign companies and investors that need to feel welcomed here. Isn't it time that taxation on essential items as fuel and food is re engineered to have a capping mechanism - for example tax increases could be limited to inflation, or an element of the increase in tax be earmarked for grants for people to insulate their homes and/or fit solar or wind power options. Reinvest the penalty to reduce the future demand on dwindling resources.

My brain isn't big enough to do the maths, but I'm sure that there's enough processing power in the collective consciousness of the power and fuel companies plus the government to work out the sums. 

The companies involved need to better consider the impact on their consumers of unfettered price rises. Together they could force a rethink of Treasury tax structures and need to do this before the "fuel poor" start to freeze in their beds. Who will feel responsible then?

And don't get me started on the price of a loaf of bread.........

Published Friday, 23 May 2008 by Editor
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