Energy giants force poor consumers to pay more

Energy companies have been charging its poor customers about £567 per year more than its wealthier consumers. This was reported by a consumer group’s study funded by the government.

Electricity and gas consumers who cannot afford to pay quarterly or even monthly bills resort to buying credits and loading the amount into their meters. But the energy companies charge them much more compared to other consumers. In January this year, The Independent had reported that consumers using pre-payment meters are being charged 10 times the amount the companies were “supposedly” giving back to vulnerable consumers.

The electricity regulator, Ofgem, have classified a million out of 5 million consumers using pre-payment mode of payment as those living in fuel poverty.

An investigation by Energywatch, a consumer group, discovered that British Gas is overcharging the most from its pre-payment consumers. They are taking £567 per year more on pre-paid tariffs as compared to their cheapest deal. By the same comparison E.on charges £411, followed by Npower with £378. Next comes ScottishPower who charge more by £172 and then is Scottish and Southern with £167. EDF does not have any equivalent tariff.

According to the chief executive of Energywatch, Allan Asher, the energy companies are extracting more out of consumers who can ill-afford to pay high energy bills in the first place. The pre-paid meter users are being discriminated for paying the bills in advance. They are the ones who at least can afford their energy bills and are also least capable of switching to quarterly or monthly bills.

Please visit www.ofgem.gov.uk and www.energywatch.org.co.uk for more