Campaign to stop energy suppliers charging the poor more for gas and electricity

[Happyolddog]

Energywatch, backed by a coalition of charities and consumer organisations have asked energy suppliers to stop charging the poor more for gas and electricity.
Child Poverty Action Group, End Child Poverty, Disability Alliance, Help the Aged, Age Concern, Citizens Advice, National Consumer Council, National Energy Action and Energywatch are so concerned they have united to press for a better deal for struggling households.
The coalition says that children living in poverty, disabled people, older consumers and the fuel poor are suffering most from rocketing gas and electricity prices,.
In a letter to the six main suppliers, the coalition says while Government energy efficiency measures may help low-income households in the long term, energy suppliers should take the lead now by equalising all prepayment tariffs with standard credit tariffs .
Energywatch says there are nearly six million prepayment meters in use. Research shows consumers on low incomes, or who are disabled are most likely to use prepayment meters. A third of single parents and the unemployed also have to pay for fuel as they use it.
Nearly three-quarters (71%) of gas prepayment meters and half (50%) of those for electricity are installed by suppliers to recover a debt. Almost a quarter of all prepayment meter users owe money to fuel companies that may take years to pay off and the coalition is convinced suppliers' pricing policies are making the problem worse.
The coalition says the high costs of paying for gas and electricity with prepayment meters represent the most vivid example of the poor being expected to pay more for essential services.
It points out that while some suppliers have equalised either their gas or electricity ppm charges with quarterly bills (standard credit), none of the major suppliers has removed the higher tariffs on both pre-paid gas and electricity.
More information

• sample letter to british gas
• energywatch press release

[9mil]

Re: Campaign to stop energy suppliers charging the poor more for gas and electricity

Some very interesting comments in there.

A lot of customers lead themselves to what is called voluntary disconnection due to the manner in which they prioritise their expenditure. Some people after having a credit meter and making no payment will request a prepayment meter with the due balance to be loaded to it. On occasions after a weekly payment has been agreed for the debt (no interest is added) they callback to reduce the payment amount for various reasons. Examples I have heard are they can no longer afford to keep their standard of social life, they have to walk their children to school instead of taking a taxi, survive by topping up their mobile phones with "only £20 per week", etc, etc

It points out that while some suppliers have equalised either their gas or electricity ppm charges with quarterly bills (standard credit), none of the major suppliers has removed the higher tariffs on both pre-paid gas and electricity.

The unit price for a number of companies are actually lower for prepayment customers than credit customers. However this is offset by standing charges which equalises the cost. Therefore there is no financial penalty for prepayment customers. It pays to check this out for yourself and not just rely on comparison websites.

Contary to belief it is not always the energy companies to blame.