Energy firms shamed over worst tariffs

BRITAIN’S two biggest energy firms have been shamed by a watchdog for having the most customers on rip-off tariffs.

Some 67 per cent of British Gas non-prepayment meter customers are on its expensive standard variable tariff (SVT) which is some £284 a year more than the cheapest deal from a rival. SSE has 71 per cent on its SVT, paying £315 a year more than the cheapest deal.

Details were revealed by energy watchdog Ofgem which said some firms are not doing enough to encourage customers on the SVT to move to a better tariff. The findings provide powerful evidence to support the Government’s proposal to impose a cap on the SVT.

The ‘big six’ firms – British Gas, SSE, E.ON, EDF, Npower and Scottish Power – say there is no need for one because competition is increasing and more families are shopping around.

The figures from Ofgem paint a very different picture. Of the rest of the big six, E.ON has 61 per cent of non-prepayment meter customers on the SVT, EDF has 52 per cent, Npower has 48 per cent and Scottish Power has 41 per cent.

Energy companies plan to scrap the SVT for a new rolling annual default tariff, but critics say this may be no better.