Here’s how we can do that on energy prices: first, it’s time for the energy regulator
OFGEM to end the unfairness of the poorest paying higher energy tariffs than the
rich. Why should a millionaire in a mansion pay a lower tariff than a hard-pressed
family on an estate? One of the starkest examples is pre-payment meters. Around six
million people in the UK use meters. Many of these are among those on the lowest
incomes. Most are unable to switch accounts or take advantage of deals to save
money, including direct debit and fixed-rate contracts. The meters cost substantially
more than the standard tariffs offered by energy companies. So the poorest end up
paying hundreds of pounds more every year than those on higher incomes. This is
unfair and should be put right by a regulator on the side of consumers.
“It’s time for the energy regulator OFGEM to end the unfairness of
the poorest paying higher energy tariffs than the rich”
Second, it’s time to end rip-off energy exit fees. Millions of people face charges of up
to £100 in ‘exit fees’ just because they want to switch their account to a lower tariff.
This is anti-competitive and contradicts the government’s advice to customers that
switching accounts will save them money. The government must change the law to
make switching energy tariffs free. Why should those who act on the advice of
government and consumer groups and switch accounts be penalised, just because
they want cheaper fuel bills?
The Big Six
Third, it’s time to get serious about insulation. Millions of homes still don’t have loft
insulation or cavity wall insulation. The government’s Green Deal scheme was
launched last year to give people the chance to insulate their homes. Yet interest
rates on the Green Deal loans can be as much as 7.5 percent. This has led to real fears
that consumers will end up paying twice the real cost of their home improvements.
To make the Green Deal work better, ministers must ensure finance is provided at an
affordable rate. That way, consumers will get greater power to make decisions about
how and when to insulate their homes.
Finally we need to encourage more energy generating and purchasing co-operatives
to start up, to provide competition for the Big Six. In 2011, residents in Brixton set up
Brixton Energy Solar 1, the UK’s first inner-city, co-operatively owned energy project
revolutionise.it
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