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Local housing chief tells MP ‘End the prepay rip-off’
The chief executive of GreenSquare housing group (based in Swindon, and including local housing provider Westlea Housing Association) has written to local MP Michael Wills to ask him to back a new bill that would make it unlawful for energy companies to rip off their poorest customers.
A cross-party group of 12 MPs has already supported the proposed new law, which would outlaw tariffs that 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 15 October. It could become law if the private members bill is selected in a ballot next week, when the proposal is likely to gain widespread support.
Now GreenSquare, which houses nearly 10,000 tenants, is writing to local MP Michael Wills to urge him to back the new bill.
GreenSquare chief executive David Ashmore 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 outlawing 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."
The National Housing Federation, which represents England's housing associations, estimates around 1.5m households are still being charged £40 extra a year 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.
