ScottishPower and Energy Action Scotland (EAS) have joined forces to launch a new project, "Warmth for the Millennium", aimed at taking 2000 households in Scotland out of fuel poverty over the next five years by offering a full range of insulation measures, heating systems and energy advice.

ScottishPower is donating an initial £200,000 start-up costs to be followed by a further £300,000 to support the EAS project for another three years.

Energy Action Scotland Director, Ann Loughrey said: " One in three Scottish households suffers from fuel poverty. Defining the problem and finding solutions requires co-ordination and vision and Warmth for the Millennium is about turning words into actions. It focuses on real solutions to the real problem of fuel poverty. The goal is to take 2000 households out of fuel poverty over the next five years. In this partnership, ScottishPower has again shown its commitment to finding real practical solutions to fuel poverty."

Hammy Smillie, Business & Community Director, ScottishPower, said: "ScottishPower is committed to alleviating fuel poverty and the Warmth for the Millennium project is a perfect opportunity for us to continue our involvement. Energy Action Scotland has the vision and ability to manage this project and to actually do something, which will help people throughout Scotland."

Examples of the type of households to be helped by the Warmth for the Millennium project:

A typical family of 2 adults and 2 children living in a 3 bedroomed semi-detached house with no heating system or insulation can expect to have an energy rating of 1 (see editors's note), spending £1,660 on fuel each year. By the installation of a Warmth for the Millennium package of heating and insulation, the energy rating rises to 5.1 and the energy bill drops to £711, a saving of £949. The environmental benefits are also substantial with savings of 3.3 tonnes of CO2.

A single pensioner living in a house with a current energy rating of 1.9 and having a package of insulation measures will have the energy rating of their home increased to 4.6. This in turn will relate to a reduction in annual fuel bills from £1,231 to £721, a saving of £510. The environmental benefits of this are also significant with savings of 4.3 tonnes of CO2 per year for this house.

Note to editors: The houses illustrated are not uncommon for many fuel poor households in Scotland who tend to live in the worst housing conditions. The figures provided have been calculated using the NHER software, a rating of 1 to 10 is used, with 10 being the best case. The average NHER rating in Scotland is currently 4.1. The fuel figures have been calculated using a standard heating regime of 2 hours heating in the morning and 7 hours heating in the evening Monday to Friday. 16 hours each for Saturday and Sunday and working to a standard of 21C in the living room and 18C in the rest of the house.