Many pensioners struggle to stay warm in winter

The Scottish Executive wants energy suppliers to play their part in tackling fuel poverty.

It is currently estimated that 60% of those living in Scottish households - and recognised as suffering fuel poverty - are pensioners.

Communities Minister Malcolm Chisholm is urging firms to offer lower prices to Scotland's poorest pensioners.

Mr Chisholm has written to the three main power companies calling on them to peg annual bills for those receiving pension credits to no more than �550 - which he said amounts to 10% of the lowest pensioner income.

Power companies

He added that with insulation and central heating installation programmes, the executive has made massive strides in tackling fuel poverty.

According to Mr Chisholm, it is now time for the power companies to "play their part".

The three main fuel suppliers north of the border are ScottishPower, Scottish Gas and Scottish and Southern Energy.

The minister's move has been welcomed by Energywatch Scotland.

Its chairman, John Hanlon, said the call also had the backing of Energy Action Scotland and organisations representing older people, including Help the Aged and Age Concern Scotland.

I believe that the power companies can play their part, and in doing so help fulfil their responsibilities to their customers Malcolm Chisholm Communities Minister

"I am hopeful that it will happen. I am hopeful that the three companies will see the sense of following this route," he said.

He said energy bills had increased dramatically this year, with warnings that prices may rise further.

"The public sector, through the pensions credit minimum income guarantee and the central heating programme for pensioners, has played its part in reducing fuel poverty," he said.

"It is high time the private sector, in the shape of Scotland's energy suppliers, played its part and devised robust social tariffs for low-income pensioner households that will help win the battle against fuel poverty."

Pegged prices

He stressed that it was not a case of writing a "blank cheque" - and that it was not a big risk for the companies.

Mr Hanlon said Scottish Gas had already pegged prices for people on pension credit for three years, so it would not have to go far to meet the call for a further concession.

Mr Chisholm said that "massive strides" had been made in tackling fuel poverty in Scotland in recent years.

Energy bills have risen this year

"But of those who have to use an unreasonable proportion of their income to heat their homes, the vast majority are pensioners," he said.

"We will continue to invest in programmes to meet their needs.

"But I believe that the power companies can also play their part, and in doing so help fulfil their responsibilities to their customers."

Mr Chisholm said he would also continue to encourage people to shop around for the best energy prices.

And he added: "The Scottish Executive has set out its commitment to help elderly households live free of fuel poverty.

"I challenge the energy companies in Scotland to do the same."

The time for all energy companies to accept responsibility for the part they play in this is well overdue Age Concern spokesman

His call came as Scottish and Southern Energy reported an 11% rise in half-year profits.

The company, which includes the Scottish Hydro Electric brand, gained 450,000 customers as pre-tax profits grew to �267.9m.

Responding to the minister, Scottish Gas Director Tom Laidlaw said: "Scottish Gas works in partnership with Help the Aged and we are introducing jointly our Price Promise, which guarantees no energy price increases for the next three years for customers over the age of 60 who are reliant on pension credit.

"We are also in the final stages of setting up a trust fund...which will distribute �10m to help those in acute financial need with their household bills - not just energy bills."

A spokesman for Age Concern Scotland said: "Many older people currently live in fuel poverty and strategies to eradicate the problem are being hampered by the rising costs being charged for fuel.