SHAL Housing says “End the prepay rip-off”

Bridgwater based SHAL Housing has been made aware of a new bill which would make it unlawful for energy companies to rip off their poorest customers.

A cross party group of 12 MPs have already supported the proposed new law, which would outlaw tariffs which hammer low income families who pay for their gas through prepayment meters.

The equalisation of Tariffs for Gas and Electricity Bill was formally presented to the House of Commons on October 15. It could become law if the private members bill is selected in a ballot next month, when the proposal is likely to gain widespread support.

The National Housing Federation, which represents England’s housing associations, estimates around 1.5m households are still being charged £40 extra a year more for gas than customers who pay via quarterly bills and around £100 more than those paying by direct debit.

Energy companies rake in an extra £50m a year through the excess charge they force prepay customers to pay – even though they have an average household income of just £13,500.

While E.ON, Scottish Power, Npower and EDF have dropped the prepayment meter premium, British Gas and SSE are still charging their 1.5m prepayment meter gas customers a premium.

SHAL’s Chief Executive, John Thomson welcomed the bill and said a new law was the only way of ensuring energy companies stopped overcharging their poorest customers.

“The energy companies have shamelessly ripped off their poorest customers over many years and at last this group of MPs is taking a stand by proposing a bill which would outlaw this blatant discrimination between different customer types.

“Millions of low income families are already struggling to make ends meet during the recession. Hitting them with the very highest fuel tariffs in the market is simply not acceptable and must be outlawed”.