Poorest Lambeth families lose out most from rising energy prices
January 12, 2008 10:10 AM
Electricity and gas prices are rising
Nick Clegg has used his first Prime Minister's questions as Liberal Democrat leader to urge Gordon Brown to press gas and electricity companies to "end the scandal of the poorest families paying the most for their energy needs". Mr Clegg warned that an estimated 25,000 people were predicted to die from the cold this winter. He said "countless British families face fuel bills of £1,000 or more for the first time" this year. This follows figures published by the Liberal Democrats which show recent price rises in gas and electricity have completely wiped out the value of the Winter Fuel Payment, highlighting that on average the cost of energy bills in a typical household for a pensioner aged over 75 has risen by £350.
He asked the Prime Minister "Will he agree today to take action to stop the energy companies from hitting the poorest families with higher bills on pre-paid meters, so we can end the scandal of the poorest families paying the most for their energy needs?"
Last year Energywatch reported that energy companies are charging prepayment meter users an average of £195 extra each year for their gas and electricity compared to the best available deals. In the worst case, Npower, the gap between prepayment customers and internet customers in some parts of Britain is £304. Now we are told by the BBC that London gas users will have to pay around £45 more for gas a year than some other regions.
Many Vauxhall families depend on pre-paid meters. So what action will the Government come up with to protect them? For example, at a minimum the prepay meter price should be equalised with the standard quarterly rate.
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