Friday, 25 July 2008

Ofgem enforces 'social tariff'

Energy regulator Ofgem is forcing providers to cut charges for their poorest customers. It insists that their "social tariff" should at least match their cheapest deal.

Any of the 4.5 million households in fuel poverty - defined by energy bills swallowing over a tenth of their income - can ask to go on the social tariff. But most suppliers currently offer their cheapest deals to customers with bank accounts and internet access who can pay online or by direct debit.

This knocks at least a tenth off the average household's £1,058 yearly bill, but the choice is not normally open to the poorest with no bank accounts or computers. Instead, many of them pay most for energy because they're on prepayment meters.

Energy watchdog Energywatch welcomed the ruling but said those on the social tariff should be charged least.
Two providers, EDF Energy and Scottish & Southern, already offer that. Other providers' social tariffs are less generous or are restricted, for example, to pensioners only.

British Gas and Scottish Power are the meanest, according to Energywatch.

Call your provider to apply for its "social tariff", but you may save more by first switching to a cheaper supplier.

For advice on other ways to cut your fuel bills, call the Home Heating Helpline on 0800 336 699.

full article

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