Energy tariff changes a win for fairness - Carmichael (North Tayside Liberal Democrats)

North Tayside Liberal Democrats <info@libdems.org.uk>

Energy tariff changes a win for fairness - Carmichael

March 26, 2010 4:55 PM
Originally published by Scottish Liberal Democrats

News that the six largest energy suppliers in the UK have abandoned rules that forced some customers in the Northern Isles to pay more for their power has been hailed as a campaign success by Orkney and Shetland MP Alistair Carmichael.

Scottish and Southern Energy and British Gas recently became the last suppliers to announce they were removing their prepay meter premiums. Some customers paid over £100 a year extra.

The energy giants' decision to axe their controversial prepay meter fees followed a long-running campaign by the National Housing Federation. It means that all of the big six firms now charge prepay customers the same tariffs as those paying via quarterly bills.

It is estimated that the move will save the six million prepay customers in the UK a total of £150m a year.

Commenting, Mr Carmichael said:

'Fuel poverty is a problem that has affected a growing number of people across the Northern Isles in recent years. This is a great win for fairness and social justice and it means that almost six million people in the UK will find it easier to pay for their energy and heat their homes.

'This change of heart from energy companies is to be welcomed, although it has not come before time. This move will put money back into the pockets of some of those families in Orkney and Shetland that need it most.'

National Housing Federation Chief Executive David Orr added:

'We're delighted that all of the big six energy suppliers have equalised permanently the tariffs it charges to prepayment meter users with those charged to customers on quarterly bills.

'We are grateful to Alistair Carmichael MP who has been calling for an end to this injustice. His campaigning has helped ensure that prepay energy customers don't pay a penny more than those who pay via a quarterly bill. This success will save some of his constituents over £100 a year.'