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| Pre-pay meter users 'due rebate' | Pre-pay meter users 'due rebate' |
| (about 3 hours later) | |
| Customers who use pre-payment meters have overpaid the energy companies nearly half a billion pounds over the past three years, it is being claimed. | |
| The National Housing Federation (NHF) made the calculation using figures from Ofgem, the energy regulator. | The National Housing Federation (NHF) made the calculation using figures from Ofgem, the energy regulator. |
| It says higher charges paid by metered customers are in breach of EU rules and suggests clients may be entitled to claim the money back. | It says higher charges paid by metered customers are in breach of EU rules and suggests clients may be entitled to claim the money back. |
| About 12% of energy customers use the meters, including many on low incomes. | |
| Even though pre-pay customers pay for their fuel in advance, the big energy firms have frequently charged them more than other households, the NHF found. | Even though pre-pay customers pay for their fuel in advance, the big energy firms have frequently charged them more than other households, the NHF found. |
| Under EU directives introduced in 2004, energy firms are allowed to charge pre-pay meter users extra only if this reflects higher collection costs. | |
| Scandal | Scandal |
| Lawyers from the National Housing Federation claim these directives have been breached, and that the regulator Ofgem failed to stop this. | Lawyers from the National Housing Federation claim these directives have been breached, and that the regulator Ofgem failed to stop this. |
| Between 2006 and 2008, they say, millions of pre-pay customers were charged well in excess of the average extra cost of installing and maintaining gas and electricity pre-pay meters, which is estimated by Ofgem as being £87 over direct debit tariffs. | |
| It makes me very angry because that's my money, they should never have taken it and I want my money back Hayley CairnsCustomer | It makes me very angry because that's my money, they should never have taken it and I want my money back Hayley CairnsCustomer |
| Some pre-pay meter customers have been charged up to £500 more than those paying by online direct debits. | Some pre-pay meter customers have been charged up to £500 more than those paying by online direct debits. |
| Federation chief executive David Orr said: "It is an absolute scandal that Ofgem allowed energy firms to overcharge customers to the tune of £460m, and potentially breach EU rules for so many years. | Federation chief executive David Orr said: "It is an absolute scandal that Ofgem allowed energy firms to overcharge customers to the tune of £460m, and potentially breach EU rules for so many years. |
| "Ofgem has been asleep on the job, and it must urgently start defending the rights of ordinary people, instead of protecting the profits of big business. | "Ofgem has been asleep on the job, and it must urgently start defending the rights of ordinary people, instead of protecting the profits of big business. |
| "As a way of compensating pre-pay customers for the historic overcharging, Ofgem has a moral duty to go beyond the EU directives, and force the energy companies to equalise pre-pay meter prices with those for quarterly bills" | |
| The National Housing Federation is now raising the possibility that customers might take action to get some money back. | |
| Angry | Angry |
| Hayley Cairns has been paying for her gas with a pre-pay meter for the past four and a half years, and on average she puts £60 on her meter every month, which amounts to about £720 a year. | |
| Using the National Housing Federation calculation, that means she has paid an extra £550 since she moved in. | |
| She told the BBC she is furious about it. | She told the BBC she is furious about it. |
| "It makes me very angry because that's my money, they should never have taken it and I want my money back." | "It makes me very angry because that's my money, they should never have taken it and I want my money back." |
| Energy regulator Ofgem admits customers on pre-paid meters were unjustifiably paying more, but it says it has now forced energy companies to bring prices within EU rules. | |
| Garry Felgate, of the Energy Retail Association, which represents energy companies, said companies had already brought down their prices in response to Ofgem requirements. | Garry Felgate, of the Energy Retail Association, which represents energy companies, said companies had already brought down their prices in response to Ofgem requirements. |
| "Those prices have come down by £300 million overall on pre-payment, so they are now at comparable prices to everyone else," he said. | "Those prices have come down by £300 million overall on pre-payment, so they are now at comparable prices to everyone else," he said. |
| Are you on a pre-pay meter? What is your reaction to this story? You can send us your experiences using the form below: | Are you on a pre-pay meter? What is your reaction to this story? You can send us your experiences using the form below: |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |