North East Herts MP Oliver Heald has congratulated the National Housing Federation for its victory against pre-payment meter charges.
The National Housing Federation, and its members, have won a high-profile campaign for an end to the prepayment meter rate - with the announcement today by British Gas that it will no longer charge a premium to its gas prepay meter users.
Over the last few years, all of the big energy firms, except for Scottish Power, have charged prepayment meter customers more for their gas and electricity than anyone else - even though they are from low income backgrounds. According to research for the National Housing Federation, the average income for a household with a prepayment meter is £16,000.
The announcement means that following the campaign by the National Housing Federation, each of the big energy firms has equalised the charges they make to prepay meter users with customers on quarterly bills.
Commenting, Oliver Heald said, “This is an issue highlighted by the Work and Pensions Select Committee, on which I sit, in our 2009 Report on Tackling Pensioner Poverty. Pre-payment charges often fall upon those least able to pay, which means many gas companies have essentially been charging the taxpayer more for less. I wholeheartedly welcome this victory which will result in a considerable saving for British Gas customers.”