Chris Huhne

Liberal Democrat MP for Eastleigh

Eastleigh MP praised for role in cutting energy prices for local residents

Wednesday 31 March 2010

 

Eastleigh MP Chris Huhne has been praised for his part in stopping the big six energy suppliers from over-charging thousands of local residents for their energy.

Two of the two biggest energy suppliers in Hampshire – British Gas and Scottish and Southern Energy – have become the last big suppliers to remove the extra fee known as the prepay meter premium. Some customers paid more than £100 a year extra.

“This is a great victory for local residents who have been particularly hard-pressed to pay their energy bills over the winter” said Chris Huhne MP. “Stopping this unfair over-charging is equivalent to getting an extra week’s state pension every year and it will benefit thousands of people across Hampshire”.

The energy giants’ decision to axe their unfair prepay meter fees follows a long-running campaign by the National Housing Federation backed by local housing associations First Wessex and Swaythling.

The campaign victory now means all of the big six firms charge prepay customers no more than the tariff paid by those who pay via quarterly bills. The move will save the UK’s six million prepay customers £150m a year in total.

Before the campaign was launched three years ago, all the big energy firms, with the exception of Scottish Power, charged prepay meter customers the highest tariffs in the market for their gas and electricity – despite the fact many were on the very lowest incomes.

According to research for the National Housing Federation, the average income for a household with a prepayment meter is £16,000 a year and poorer customers will save over £100 annually from the removal of the prepay meter premium.

Federation chief executive David Orr said: “We are grateful to Chris Huhne 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.”

“We’re delighted that all of the big six energy suppliers have equalised permanently the tariffs they charge to prepayment meter users with those charged to customers on quarterly bills.”

Chris Huhne MP added: “We’ve campaigned for this day for a long time and British Gas, Scottish and Southern Energy, Scottish Power, E.ON, Npower and EDF should be congratulated for finally doing the right thing.”

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