Prepay meters: Brown promises fairer deal

THE Government is prepared to legislate to ensure power companies do not force people with prepay meters to pay much higher bills than account customers.

Charity National Energy Action say prepayment tariffs can be up to 42 per cent higher than the lowest rates available.

And yesterday the Prime Minister promised to take action if the companies do not do so.

The National Housing Federation estimates the difference between the best regular tariffs and the worst prepayment ones can be more than £300 a year.

Oldham East MP Phil Woolas said he had become aware of the problem after councillors had told him how families in Fitton Hill were suffering

He said: “I spoke to Environment Secretary Hilary Benn and to the Chancellor of the Exchequer, Alistair Darling. Other MPs also raised the issue. If the energy companies will not act, we will ensure they have to. If we need to, I understand we would legislate this winter.”

Gordon Brown’s £1 billion package includes half-price insulation for all households and free cavity wall and loft insulation for pensioners and poor households. Pensioners, disabled and unemployed people with young children will get an extra £16.50 a week if there is a severe winter with temperatures dropping below zero for seven consecutive days.

And hundreds on the lowest incomes in Oldham benefit from a freeze on their bills following a deal with energy suppliers.

It is expected the lower social tariffs will be in place by the end of the year.

But there was no mention of a windfall tax on energy giants, as demanded by backbench Labour MPs and the unions.

The Government says its aim is to insulate every home in Britain by 2020. Energy companies, councils and voluntary organisations will be making door-to-door visits in deprived areas to promote the scheme.

But last night the chief executive of the Association of Electricity Producers, David Porter, warned that customers must expect to foot part of the bill.

He said firms would divert as much of the cost as they thought they could get away with, saying “it remains to be seen just how much of it ends up on the customer’s bill in the longer run”.

There are 5,700 homes in Oldham are in fuel poverty — paying more than 10 per cent of their income on electricity and gas.