Energy companies have been urged by the industry watchdog to created "meaningful" social tariffs to the UK's most vulnerable households.
Commenting on the government's plans to combat fuel poverty, energywatch stated that the new initiative offers "no imminent reduction" on fuel poverty numbers and predicts that one million households will still be vulnerable by 2010.
The body's campaigns director, Adam Scorer, added that high energy prices were making it increasingly difficult for Westminster to meet its targets.
He said: "High prices have wrecked government targets and, despite further spending on fuel poverty initiatives, the government's projection is that there will be no imminent reduction in fuel poverty numbers.
"The report underlines the need for the issue of price to be tackled head on. One of the only ways this can be done is to ensure energy companies offer meaningful social tariffs to their hardest-pressed customers."
energywatch's comments on the government's fuel poverty plans have come after the body's research found that energy customers with pre-payment meters were being charged £195 more than the best deals available to them.
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