22nd April 2009 - Ending energy prepayment rip offs

Linda McAvan has welcomed a vote in the European Parliament today intended to bring down energy bills – including measures to cut the bills of prepayment users by an estimated £215 a year.

Around 5.9 million households across the UK currently use pre-payment meters. They are often the poorest and most vulnerable customers, yet research from the financial inclusion network Transact has shown that they pay up to £215 a year more for their gas and electricity.

Now a new EU law will ban all discriminatory pricing in the energy market, including unfair prepayment meter charges, within the next 18 months.

The new European legislation will also ensure every household in the EU must be fitted with a so-called ‘Smart Meter’ by 2022. Smart Meters will ensure customers are able to better control their energy usage and increase energy efficiency as well as cutting energy costs.

It will also enshrine energy customers’ right to change suppliers within three weeks, ensure consumers receive adequate information on their rights, provide for a robust complaints handling system and compel every EU country to put together an action plan to tackle energy poverty

Linda said:

“I have long been concerned that the very people who can afford it least are forced to pay more because they depend on prepayment meters. It is a simple question of fairness. Because the big energy companies operate in more than one country, the best way to tackle these problems is at an EU level. I was really pleased to be able to back a strong package of measures to cut bills and protect consumers.”