In a major speech on fuel poverty, Environment Minister Jane Davidson outlined that £270 million in funding could be available to Wales over the next three years, but significant challenges still lay ahead.

Speaking at the National Energy Association Cymru Annual Conference in Cardiff, the Minister outlined how significant resources are now being targeted at fuel poverty in Wales.

Ms Davidson said: "The Welsh Assembly Government sees tackling fuel poverty as a priority. Just before Christmas I announced extra funding for our Home Energy Efficiency Scheme, meaning almost £23 million will be spent this year making people's homes better insulated.

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"In addition, we have recently announced an additional £26 million from the Strategic Capital Investment Fund to support for tackling fuel poverty across Wales over the next three years and in the Head of the Valleys a multi-million low carbon zone project is under way to reduce energy use and help fuel poverty.

"There are considerable resources available to address this issue. Over the next three years around £270 million could be on offer to help those affected by fuel poverty.

"For example, Wales' share of the money resulting from the Carbon Emission Reduction Target scheme should provide an investment of around £180 million over the next three years. CERT demands that energy suppliers promote cuts in carbon emissions in our homes.

"Fuel poverty has been with us for a long time, and the recent economic situation and increased energy prices, factors beyond our control, make delivery of our targets to eradicate fuel poverty very challenging.

"However, we have come far. The HEES scheme alone has helped 93,000 households at a cost of over £95 million, and we remain determined to do everything feasible to alleviate the effects of fuel poverty in Wales."

(CD/JM)