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| Prepay energy meters are 'unjust' | Prepay energy meters are 'unjust' |
| (30 minutes later) | |
| Millions of UK households are paying energy tariffs that are "unjust", the Energy Minister Malcolm Wicks has said. | Millions of UK households are paying energy tariffs that are "unjust", the Energy Minister Malcolm Wicks has said. |
| Mr Wicks said he would be prepared to legislate to force energy providers to lower their charges for the four million people on pre-payment meters. | |
| Pre-payment tariffs can be up to 70% higher than the lowest rates available, said charity National Energy Action. | Pre-payment tariffs can be up to 70% higher than the lowest rates available, said charity National Energy Action. |
| Mr Wicks said he had asked energy watchdog Ofgem to investigate the matter and report back. | Mr Wicks said he had asked energy watchdog Ofgem to investigate the matter and report back. |
| Meter misery | Meter misery |
| The extra costs that people on pre-payment meters are now having to meet seem totally disproportionate Malcolm Wicks, Energy Minister | The extra costs that people on pre-payment meters are now having to meet seem totally disproportionate Malcolm Wicks, Energy Minister |
| Mr Wicks said: "The extra costs that people on pre-payment meters are now having to meet seem totally disproportionate. | Mr Wicks said: "The extra costs that people on pre-payment meters are now having to meet seem totally disproportionate. |
| "The gap between what they're paying and what other people are paying has grown to a very unjust extent. | "The gap between what they're paying and what other people are paying has grown to a very unjust extent. |
| "Depending on what the report says, we're well prepared to legislate to ensure this injustice doesn't occur in the future." | "Depending on what the report says, we're well prepared to legislate to ensure this injustice doesn't occur in the future." |
| Soaring oil prices could push energy bills up by more than 60% within the next few years, according to a report for the energy supplier Centrica. | Soaring oil prices could push energy bills up by more than 60% within the next few years, according to a report for the energy supplier Centrica. |
| This has led to concerns that consumers are having pre-payment meters installed because they cannot afford their energy bills. | This has led to concerns that consumers are having pre-payment meters installed because they cannot afford their energy bills. |
| Fuel poverty | Fuel poverty |
| Joanne Carr, from the energy charity National Energy Action, said: "About 1,000 people a day are being put forcibly onto pre-payment meters because of debt." | Joanne Carr, from the energy charity National Energy Action, said: "About 1,000 people a day are being put forcibly onto pre-payment meters because of debt." |
| The charity said it expects the number of people struggling to pay bills to rise as energy prices soar. | The charity said it expects the number of people struggling to pay bills to rise as energy prices soar. |
| "We're expecting them to go up by about 40% which is going to be dreadful for those who are in fuel poverty," she added. | "We're expecting them to go up by about 40% which is going to be dreadful for those who are in fuel poverty," she added. |
| One customer, Stuart Page, claimed he was forced onto a pre-payment system after his supplier underestimated his electricity usage and set his direct debit too low. | One customer, Stuart Page, claimed he was forced onto a pre-payment system after his supplier underestimated his electricity usage and set his direct debit too low. |
| Mr Page was then told owed more than £1,000. When he could not pay, the supplier told him he would have to have a pre-payment meter installed. | Mr Page was then told owed more than £1,000. When he could not pay, the supplier told him he would have to have a pre-payment meter installed. |
| "We've had to cut corners everywhere to pay for the electricity and it's wrong," he said. | "We've had to cut corners everywhere to pay for the electricity and it's wrong," he said. |
| The National Housing Federation, which represents 1,300 housing associations, estimated the difference between the best regular tariffs and the worst pre-payment tariffs was about £330 a year. | The National Housing Federation, which represents 1,300 housing associations, estimated the difference between the best regular tariffs and the worst pre-payment tariffs was about £330 a year. |
| However, the energy suppliers' association said that pre-payments meters cost more to provide and that some tariffs had been reduced. | However, the energy suppliers' association said that pre-payments meters cost more to provide and that some tariffs had been reduced. |