July 25, 2008
Energy Minister tells providers to cut meter costs
The UK’s minister for Energy, Malcolm Wicks, has called on electricity and gas companies to cut the tariffs on energy meters. The minister stated that a large proportion of these charges were unfair, as customers who use these metres have to pay more than other energy consumers. It is estimated that there are over 4 million homeowners who pay for their energy in this manner.
The energy minister said that he will formally request that industry regulator, Ofgem, prepare a report on the impact of pre-payment meter charges. He indicated that the government may introduce legislation if Ofgem concludes that current pre-payment meter charges are unsatisfactory. Additionally, the minister said that it is unjust for those who pay by meter to be charged more than others.
In their defence, energy firms argued that electricity and gas meter customers have to pay higher rates because of installation and service costs. The power companies also stated that they have already reduced tariffs by significant amounts.
Industry experts predict that energy price rises will push over 2 million people into fuel poverty by 2010