It is also calling for the introduction of a ‘backstop tariff’ to help those struggling to pay following the release of the latest Department for Energy and Climate Change fuel poverty statistics.
The figures show the number of households in fuel poverty in England in 2013 was an estimated 2.35 million, the equivalent of 10.4 per cent of all English households.
In a report published today Citizens Advice said diverting the £1 billion currently taken out of consumers’ energy bills to pay for energy efficiency measures to councils would be more effective as they better understand the housing and needs in their local area.
The charity also said many vulnerable customers are being penalised with higher energy prices and is calling for the introduction of a low-priced ‘backstop tariff’ that customers struggling to pay could be transferred onto automatically.
Citizens Advice chief executive Gillian Guy said: “Today’s figures are a brutal reminder of the scale of fuel poverty. There is a real opportunity for the Government and the Competition and Markets Authority to help those who are failed by the energy market and aren’t benefiting from existing fuel poverty programmes.”
“This is the crucial time to make sure the market is working for all consumers and that those who are struggling are getting the necessary support.”
The latest round of Energy Company Obligation (ECO) for installing energy efficiency measures began in April this year. The new obligation period, ECO2, will run until 31 March 2017.