Press Releases

Wednesday 12th March 2008

Midsummer calls on Energy Minister to introduce fairer energy prices

Midsummer Housing Association has called on the Government to stop energy companies from raking in £250m in excess profits from their poorest customers.

 

Customers who pay for their energy via a pre-payment meter, which include many of Midsummer’s tenants, face the highest charges for their energy even though they are generally on lower incomes than those who pay by other methods.

 

Pre-payment meter customers pay up to £89 per year than those who pay their bills on receipt of a bill, and £176 more than those who pay by direct debit. The differential between pre-payment meter tariffs and online billing is even greater.

 

Midsummer is supporting a national campaign by the National Housing Federation, which represents housing associations in England, to end the pre-payment meter rip-off.

 

The Federation believes that the energy companies are charging pre-payment meter customers £500m a year more than those who pay by other methods – and that only half of the extra charges go towards installing and maintaining the meters.

 

This means that energy suppliers are making are making £250m in excess profits from their poorest customers – with the higher charges being used to subsidise discounts for those who are better able to pay.

 

Midsummer has now written to the Energy Minister, Malcolm Wicks MP, urging him to use the Bill to remove this inequity from our energy market.

 

Maggie Sherlock, Midsummer, said:

“With energy prices going through the roof and energy suppliers on course for record profits, more should be done to protect pre-payment meter customers, who are getting the very worst deal.

 

“The Energy Minister, Malcolm Wicks MP, has missed a golden opportunity to end the pre-payment meter rip-off once and for all. The Government needs to take action now and to remove the pre-payment premium once and for all.”