Energy suppliers to triple fuel aid by 2010

Britain's largest energy suppliers have agreed to triple the amount they spend on helping their poorest customers keep warm to £150 million by the winter of 2010-11, the government said.

The biggest six suppliers have agreed to increase spending on social assistance programmes for the fuel poor - households which spend more than 10 percent of their income on heating - gradually over the next three years from £50 million at present.

Under the deal, Centrica, EDF Energy, EON, Npower, Scottish & Southern and Scottish Power will double the amount spent on helping the poorest households to £100 million for next winter and £125 million pounds for 2009-10.

The government has squeezed the extra funding from the big six retailers after they all hiked their power and gas prices earlier this year, blaming rising wholesale energy costs.

"I do not underestimate the difficulties and anxiety that rising energy prices can cause but I believe that this extra cash, coupled with ensuring we have the most competitive market possible, will help us toward our goal of eradicating fuel poverty in the UK," Industry Minister John Hutton said in a statement.

The extra money could be used to offset bills or spent on increasing energy efficiency to cut heating needs and will be targeted at the most vulnerable, including the elderly and disabled.