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Left out in the cold? New energy tariffs, low-income households and the fuel poor

Author

Listed:
  • Bennett, M
  • Cooke, D
  • Catherine Waddams-Price

Abstract

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.

Suggested Citation

  • Bennett, M & Cooke, D & Catherine Waddams-Price, 2002. "Left out in the cold? New energy tariffs, low-income households and the fuel poor," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 167-194, June.
    • Handle: RePEc:ifs:fistud:v:23:y:2002:i:2:p:167-194
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    Citations

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    Cited by:

    1. Evens Salies & Catherine Waddams Price, 2003. "Pricing structure in the deregulated UK electricity market," Sciences Po publications 03-6, Sciences Po.
    2. Judith Clifton & Daniel Díaz‐Fuentes & Marcos Fernández‐Gutiérrez & Julio Revuelta, 2011. "Is Market‐Oriented Reform Producing A ‘Two‐Track’ Europe? Evidence From Electricity And Telecommunications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(4), pages 495-513, December.
    3. Broadstock, David C. & Li, Jiajia & Zhang, Dayong, 2016. "Efficiency snakes and energy ladders: A (meta-)frontier demand analysis of electricity consumption efficiency in Chinese households," Energy Policy, Elsevier, vol. 91(C), pages 383-396.
    4. Miniaci, Raffaele & Scarpa, Carlo & Valbonesi, Paola, 2014. "Energy affordability and the benefits system in Italy," Energy Policy, Elsevier, vol. 75(C), pages 289-300.
    5. Rodríguez-Álvarez, A. & Orea, L. & Jamasb, T., 2016. "Fuel poverty and well-being: a consmer theory and stochastic fronteir approach," Cambridge Working Papers in Economics 1668, Faculty of Economics, University of Cambridge.

    More about this item

    Keywords

    Fuel charges; household welfare;

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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