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Thursday 8th January 2009 Make us your HOME PAGE  What is RSS?

UK NEWS

ENERGY FIRMS PLEDGE HELP ON POVERTY

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Malcolm Wicks has asked Ofgem to examine pre-payment meter rates

Wednesday April 23,2008

Energy companies have promised to renew their efforts to help tens of thousands of low income households out of fuel poverty.

A summit led by regulator Ofgem agreed on measures including educating customers about switching suppliers and targeted help for the poorest households.

Campaigners immediately said the measures did not go far enough and described the top-level meeting of ministers, suppliers, consumer groups and a European Commission representative as "disappointing".

Ofgem said the "raft of measures" would make sure help was targeted at those in genuine need.

Suppliers had agreed to provide clear information to help agencies guide the elderly and vulnerable consumers to the best deals, and to allow pre-payment meter customers to use switching sites. An action plan would follow in early May, Ofgem said.

Ofgem chairman Sir John Mogg said: "The actions from this Ofgem summit will help ensure that resources to fight fuel poverty have the highest impact by targeting them precisely on those who need them - the fuel poor and those vulnerable to fuel poverty."

Energy Minister Malcolm Wicks said ministers had asked Ofgem to look at the rates paid by households on pre-payment meters "as a matter of urgency".

"I hope we will see a reduction in the price difference between paying for your fuel through pre-payment meter and paying through your bank account," he told BBC Radio 4's The World at One.

But the National Housing Federation said the summit fell "far short" of expectations.

Federation chief executive David Orr said: "The prepayment meter rip-off disproportionately affects vulnerable people, such as single parents and people with disabilities. And ministers should simply compel the energy companies to equalise prepayment meter tariffs with the standard rate immediately."


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