Debt News

Watchdog calls for fair energy bills

8 October 2008

Ofgem, the energy regulator, has instructed energy companies to stop charging customers more because they pay by pre-payment meters rather than direct debit.

Acknowledging that ‘competition could not stop rising prices of oil and coal from pushing up bills’, the regulator nonetheless said that ‘energy firms could do more to make sure that all customers were able to access the best tariffs’, the BBC reports.

Although Ofgem reported that most customers were well served by the energy market, it also told power companies they needed to ensure that all customers enjoyed the benefits of competition. Many people who pay with pre-payment meters do so because of debt problems. According to the Energy Retail Association: “Customers who are in debt are placed on a pre-payment option, if other payment options are not suitable.”

Already in debt, many people with pre-payment meters can be hit particularly hard – and driven further into debt – by any extra expense.

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