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UK energy watchdog under pressure

Ofgem, the UK energy watchdog, is today under enormous pressure to act against UK energy companies who are alleged to be acting against the new licensing conditions introduced to the industry just two months ago. In simple terms, these new regulations ensure that energy companies in the UK are not able to differentiate between the charges levied against those paying by direct debit and there was using prepayment meters. However, they are allowed to charge the customer any additional costs associated with the meter and this is the potential grey area of concern.

Those who have experienced prepaid meters will be well aware that there seems to be an added cost for this particular group, even though the vast majority of prepaid meters are held by those on low incomes or those with a difficult financial history. The National Housing Federation has taken up the issue on behalf of UK customers and claims that five of the big six energy companies are charging prepayment customers on average £12 extra a year.

Whether Ofgem will be able to make a difference in the short to medium term remains to be seen but the fact is that the rules are there and the National Housing Federation is alleging that they are not being adhered to, or at least not to the letter and spirit of the law.

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