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NHF: Prepay meter campaign victory saves £150m for poorest energy customers

National Housing Federation logo for press releasesNational Housing Federation logo for press releases

Thursday, 04, Feb 2010 12:00

The Federation, and its members, have won a high-profile campaign to end the prepayment meter rip-off - after British Gas announced today that it will no longer charge a premium to its gas prepay meter users.

The announcement means that following the long-running campaign by the Federation, supported by its members, each of the big energy firms has equalised the charges they make to prepay meter users with customers on quarterly bills.

The Federation estimates that the campaign has saved prepayment meter customers at least £150m since it began in 2007.

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 Federation, the average income for a household with a prepayment meter is £16,000.

Federation chief executive David Orr said: "The efforts of the Federation, housing associations and residents for a fairer deal for prepayment meter customers have paid off.

"Today's news is an incredible testament to what can be achieved when we all pull together."

He added: "This is a great day for social justice and means that almost one million people, many of whom are on lower incomes, will now find it easier to pay their energy bills and heat their homes."

Although we now have full equalisation across all of the big six energy suppliers - British Gas, EDF, e.on, npower, SSE and Scottish Power - the Federation will lobby MPs to make the change permanent in the Energy Bill, currently progressing through Parliament.

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