A big overhaul of the gas and electricity plans is needed at the highest levels, Consumer Focus says.
Government proposals to improve energy efficiency in homes - thereby cutting gas and electricity costs over the long term - have been criticised by a watchdog.
Consumer Focus said that extra investment is needed from the public purse if the government's goals on reducing costs for consumers are to be achieved. According to the group, £3 billion a year is needed over the next seven years - along with a significant re-focusing of what the money is spent on in order to make it go further.
There are several government energy efficiency plans currently ongoing, aimed at helping the UK to meet its commitment to reduce carbon emissions by 20 percent before 2020. These include schemes to install energy-saving measures such as dry-wall insulation, reducing both emissions and energy bills in many cases.
However, the consumer group argued that there were no specific targets currently set for energy efficiency levels, damaging the likelihood of the government achieving its aims. Jonathan Stearn, energy expert for Consumer Focus, added: "The government's current energy efficiency schemes are simply not up to the task of … cutting carbon emissions."
Analysis from Consumer Focus suggests that there are now over five million "fuel poor" people in the UK. Fuel poverty is defined as someone who spends over ten percent of their income on gas and electricity bills.
Mr Stearn said: "Unless the government invests in a radical new energy efficiency scheme its promise to end fuel poverty will prove to be empty."
