Menu
08/10/2008
'Ofgem Lets Down Some Of The Poorest In Society' Says NHF
Ofgem has failed some of the poorest customers in the country and should be 'scrapped' says the National Housing Federation (NHF), in response to the energy regulator's initial report on its energy market probe.
Ofgem said that the big energy companies should stop charging poor people on prepayment meters more for their gas and electricity - but has chosen not to compel them to stop the prepay meter 'rip off'. Instead, it is asking the companies to tackle the issue voluntarily - and plans to consult on its plans for at least two months.
In response, the NHF, has unveiled new figures which show why compulsory action should be taken immediately.
The Federation figures show that for every month that no action is taken prepayment meter users will pay £113m more than those on the best deals available.
The Federation also revealed that for every year the situation continues, prepayment meter customers will pay £1.3bn more than those on the best deals.
NHF Chief Executive David Orr said: "The announcement by Ofgem that it is going to consult over the introduction of a voluntary scheme to end the prepayment meter rip off is deeply disappointing, as it means that the plight of some of the poorest in society will drag on for at least several months yet.
"This was Ofgem's big chance to show that it was a regulator with teeth but it has fluffed it. Asking fat cat energy companies to do the right thing by the fuel poor is like asking Dracula to look after a blood bank."
He added: "Our figures show that for every month the prepayment meter rip off is allowed to continue, prepay users are paying £113m more than those on the best deals available – and that if the situation drags on for another year, prepay users will pay £1.3bn more than those on online direct debit deals.
"Ofgem's report accepts that some of the poorest customers must always pay more for their energy. We say this means there is something fundamentally wrong with the market – and that's the question that the new Secretary of State for Energy must address. One of the first things he should do is disconnect Ofgem and replace it with a regulator with teeth."
(CD/JM)
Ofgem said that the big energy companies should stop charging poor people on prepayment meters more for their gas and electricity - but has chosen not to compel them to stop the prepay meter 'rip off'. Instead, it is asking the companies to tackle the issue voluntarily - and plans to consult on its plans for at least two months.
In response, the NHF, has unveiled new figures which show why compulsory action should be taken immediately.
The Federation figures show that for every month that no action is taken prepayment meter users will pay £113m more than those on the best deals available.
The Federation also revealed that for every year the situation continues, prepayment meter customers will pay £1.3bn more than those on the best deals.
NHF Chief Executive David Orr said: "The announcement by Ofgem that it is going to consult over the introduction of a voluntary scheme to end the prepayment meter rip off is deeply disappointing, as it means that the plight of some of the poorest in society will drag on for at least several months yet.
"This was Ofgem's big chance to show that it was a regulator with teeth but it has fluffed it. Asking fat cat energy companies to do the right thing by the fuel poor is like asking Dracula to look after a blood bank."
He added: "Our figures show that for every month the prepayment meter rip off is allowed to continue, prepay users are paying £113m more than those on the best deals available – and that if the situation drags on for another year, prepay users will pay £1.3bn more than those on online direct debit deals.
"Ofgem's report accepts that some of the poorest customers must always pay more for their energy. We say this means there is something fundamentally wrong with the market – and that's the question that the new Secretary of State for Energy must address. One of the first things he should do is disconnect Ofgem and replace it with a regulator with teeth."
(CD/JM)
Related UK National News Stories
Click here for the latest headlines.
12 September 2008
Soaring Fuel Bills Will Plunge 2.6m Customers Into Debt Next Year
Soaring fuel bills will plunge 2.6 million customers into debt by the end next year - forcing many low income families to decide whether to heat or eat this winter, according to new research published. The report, commissioned by the National Housing Federation (NHF), predicts 1.
Soaring Fuel Bills Will Plunge 2.6m Customers Into Debt Next Year
Soaring fuel bills will plunge 2.6 million customers into debt by the end next year - forcing many low income families to decide whether to heat or eat this winter, according to new research published. The report, commissioned by the National Housing Federation (NHF), predicts 1.
08 September 2008
A Quarter Of The Population Set To Fall Into Fuel Poverty
Almost a quarter of the population will be in fuel poverty by the end of next year, according to a new report. The research, published by the National Housing Federation (NHF), shows that 5.7m households will be spending at least 10% of their income on energy bills by the end of 2009, an increase of 100% over 2005 levels.
A Quarter Of The Population Set To Fall Into Fuel Poverty
Almost a quarter of the population will be in fuel poverty by the end of next year, according to a new report. The research, published by the National Housing Federation (NHF), shows that 5.7m households will be spending at least 10% of their income on energy bills by the end of 2009, an increase of 100% over 2005 levels.
17 October 2011
Gov To Hold Energy Summit
David Cameron is adding to the pressure on energy firms, ahead of a meeting with the 'big six' suppliers on Monday to discuss bringing down the cost of power. The Prime Minister will be meeting the firms, consumer groups along with the regulator, Ofgem.
Gov To Hold Energy Summit
David Cameron is adding to the pressure on energy firms, ahead of a meeting with the 'big six' suppliers on Monday to discuss bringing down the cost of power. The Prime Minister will be meeting the firms, consumer groups along with the regulator, Ofgem.
24 September 2008
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
22 August 2014
EDF Energy Fined £3m Over Handling Of Complaints
Energy regulator, Ofgem, has fined EDF Energy £3m following the conclusion of an investigation into how the company dealt with customer complaints. Complaints made to the company rose by 30% in 2011 following the introduction of a new IT system.
EDF Energy Fined £3m Over Handling Of Complaints
Energy regulator, Ofgem, has fined EDF Energy £3m following the conclusion of an investigation into how the company dealt with customer complaints. Complaints made to the company rose by 30% in 2011 following the introduction of a new IT system.
-
Northern Ireland WeatherToday:Gale, coastal severe gale, northwest winds ease from late afternoon. Scattered showers will fall as snow over the hills at first, becoming isolated from mid-afternoon. Maximum temperature 7 °C.Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Cloud will spread east towards morning. Minimum temperature 2 °C.
