Miliband ''urges providers to cut bills''

By MoneyhighStreet Staff. Published on November 17, 2008 This post currently has no comments.

The environment secretary met with large gas and electricity providers today.

Ed Miliband was expected to urge the firms to cut their prices, reflecting recent market trends, the Guardian reports.

Apparently excessive costs for customers paying through pre-payment meters were also expected to be on the meeting''s agenda.

The "big six" providers have been criticised for putting up bills due to high wholesale oil costs and not cutting them fast enough when these costs fall.

During the recent commodities boom, which peaked when crude oil hit an all-time high of $147 a barrel in July, the firms imposed two separate rounds of double digit price hikes for their general plans.

However, oil has now fallen to below $60 a barrel, with similar declines marked for natural gas.

Jonathan Stearn, Consumer Focus''s disadvantage campaigner, told the Guardian: "Companies could be making up to £550million a year from extra charges they charge on pre-payment meters.

"The energy companies are making the most money out of those on pre-payment meters and often those are the people on the very lowest incomes."