MP blasts Ofgem's 'timid' move to tackle energy meter charges

May 7 2009 by Jane Tyler, Birmingham Mail

BIRMINGHAM MP Gisela Stuart has criticised energy regulator Ofgem for “not going far enough” with plans to clamp down on companies who exploit customers using prepayment meters for their gas and electricity.

The Edgbaston Labour MP has been at the forefront of a campaign to protect consumers after it was revealed people who pay in advance end up being charged up to £300 more than those using online direct debit.

Ofgem has carried out an investigation into energy pricing policies, but has ruled out more radical plans for change. 

Instead it will amend the licences issued to energy suppliers, adding a requirement that any difference in prices should be justified by the costs involved.

Ofgem defended its course of action, saying this would remove the worst discrepancies. But Ms Stuart said it would mean prepayment meter customers still paying more than others.

“I am disappointed that the regulator has taken such a timid approach,” she said. “These changes will remove the worst abuses, but because prepayment meters cost more to maintain, energy companies will still be able to charge these customers more.”