Suppliers 'should provide cheaper utilities for the poor'
Published On 10 May 2007
The members of the poorest households in the UK should pay less for their utilities, an industry watchdog has said.Under energywatch's proposals the government would make it mandatory for suppliers to include a 'social' tariff for poorer people, and actively work with utility companies to identify the neediest and at risk customers.
"Many of Britain's poorest consumers pay more for their energy because the market is indifferent to their needs," explained Jonathan Stearn, the head of campaigns for Energywatch.
"Suppliers have made attempts at offering discounted tariffs for eligible consumers. But these offers are inconsistent and can be more expensive than the suppliers' own direct debit tariffs.
"With fuel poverty at its present level, it is time for a fresh approach. [The] government has a target to meet on reducing the numbers in fuel poverty."
Consumer groups welcomed the move, saying that it could be an effective method of combating fuel poverty.
"The most vulnerable households tend to have prepayment meters and they not only pay a premium for their energy, but are left unable to switch to a better deal," explained Karen Darby, the founder of SimplySwitch.com.
"It may be summer and energy prices may be falling, but with a recent estimate that three million people in Britain are struggling to pay their energy bills, the issue needs to be addressed as a matter of urgency."
