Monday, January 9th, 2012

Assembly Member calls for flexibility in Heating Oil market

With the price of domestic heating oil differing throughout the nation and little certainty at the level of future price increases, Plaid Cymru Assembly Member Rhodri Glyn Thomas has called on the Welsh Government to carry out a full assessment of domestic fuel prices and to encourage domestic fuel providers to consider lowering the minimum order level to assist households struggling to heat their home.

Mr. Thomas said that many fuel suppliers offer flexible payment plans such as monthly direct debits and deliver fuel when needed, but went on to say that householders need as much flexibility as possible to assist in paying their bills.

The Plaid Cymru AM also said that Carmarthenshire households are disproportionately affected by the rise in fuel costs as many households in the county are unable to connect to the gas grid.

Rhodri Glyn Thomas said:

“Many households in Carmarthenshire and rural Wales are disproportionately affected by the rise in fuel costs as they are unable to connect to the gas grid and are left to pay the ever increasing costs for domestic oil through no fault of their own.  We have examples in the county of costs of domestic oil rising by more than £100 in just 3 months – a 35% increase in such a short period. 

“The vast majority of domestic oil suppliers require a minimum order of 500 litres.  This is understandably significantly costly for many households which are unable to afford the minimum delivery.

“Such households sometimes result in paying over and above the odds for their fuel as they buy as little as an individual 20litre unit as that’s all they can afford.  The 20litre units are commonly used as an emergency supply whilst households await their main delivery.  The price per litre is far higher this way.

“There are providers throughout Wales which already offer flexible payments such as monthly direct debits to assist consumers having to pay large sums of money in one go.  Unfortunately, there are some providers which do not.

“I have asked the Welsh Government to undertake a full review of the industry and how best practice can be shared through all suppliers, such as reducing the minimum delivery order from 500 litres to 250 litres. 

“We need as much flexibility in the market which ensures consumers are able to heat their home at an affordable level, whilst at the same time ensuring this doesn’t disadvantage suppliers.

“The Labour Government here in Wales must consider all options to help eradicate fuel poverty in our communities”.

 

ENDS

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