Why do low income energy customers get such a bad deal?
The revelation that some low-income families are losing out to the tune of £100 a year by simply using prepaid energy meters is one of the more bizarre elements of the UK energy market. If we take a step back and consider the situation, we are looking at families on relatively low income, who may have financial issues and are allegedly being charged up to £100 a year more than those paying their energy bills by direct debit. So how can this be?
While there is no doubt there are some additional costs associated with prepaid energy meters it is arguable whether the cost is anywhere near the £100 quoted by many consumer groups. Until we see definitive proof either way this is a situation which will drag on for some time even though on the surface the regulator would appear to have already tackled the situation with new legislation.
Surely now is the time for the UK government to step forward and protect those on low income from the ever-growing threat of energy poverty which is sweeping through low-income families across the country. Whether this is a forlorn hope in the short term remains to be seen because promises have been broken time and time again.
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