Energy firms criticised by MPs
MPs in the UK have criticized three major energy suppliers, accusing the firms of taking advantage of lower income customers by back charging them and forcing them into unmanageable debt that is brought on through no fault of their own. The charges are being applied to energy customers that are on prepayment meters, and according to MPs and consumer watchdogs the energy companies in question are back charging nearly three quarters of a million consumers between them after token meter fees went up.
Over one hundred and thirty MPs are backing a motion that criticises Npower, Powergen, and Scottish Power. Brian Donohue, Labour MP, has set the Early Day Motion, and said that the move by these energy suppliers is forcing households that are already struggling with finances into even higher levels of debt. He added that these low income consumers were being forced into 'overnight debt' that was being brought on because of these energy suppliers rather than through the fault of the consumer.
Adam Scorer from Energywatch also commented on the situation, stating: 'Three energy suppliers are creating instant misery for hundreds of thousands of consumers. People with these ancient token meters think they are paying upfront for their electricity only to find themselves in debt when the meter is recalibrated.'
One of the energy firms that is under fire for back charging consumers is Powergen. Officials from the energy giant said that prepayment token meters are being replaced with key meters in nearly two hundred thousand homes, and the new meters will be taking on the new pricing. A spokesperson for the firm added: 'During this period of change it is of utmost importance to us that we support our most vulnerable customers,' it said in a statement. We will always respond to genuine cases of hardship and will deal with each situation sympathetically, on a case-by-case basis. In particular, we will agree a repayment rate as low as £1 per week and also provide support through our CaringEnergy programme.'
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