‘End energy meter premium scandal’
The government must put a stop to “scandalous” premiums that poorer Bath and North East Somerset residents who use prepayment meters face, says Metro Mayor Dan Norris.
There are more than 7,000 households in and around the area who are “pay-as-you-go” energy customers, meaning they pay for their gas and electricity in advance, either online or from credit bought in shops.
But they are forced to pay higher rates than households who pay their bills by direct debit despite having less than half of their disposable income. When the energy price cap rose by £693 a year for typical households in April, it rose by £708 for the average prepayment customer.
Now Mr Norris, pictured, has backed a Labour plan to level the playing field – the party wants to bring prepayment prices in line with direct debit prices.
Labour would reimburse energy companies for the difference this winter through fixing loopholes in the windfall tax, another Labour proposal which the government brought in in May after campaigning by the party.
The call for change comes after a meeting between ministers and energy executives last week yielded no additional help to ease the burden of the cost-of-living crisis. Analysts have predicted that typical energy bills could rise to approximately £3,500 in October, and more than £4,200 in January.
Mr Norris said: “The poorest in the West of England fork out more for their gas and electricity through prepayment meters that have higher standing charges and higher tariffs. This is simply scandalous.
“The truth is many Bath and NE Somerset residents will not have a dilemma about whether to turn the heating on this winter; without the funds to put in the meter, they will not have the choice. “The government must end this unfair prepayment premium today – not tomorrow, not at some unspecified point in the future but today – and help everyone manage their bills over the winter. Our region is in the midst of an energy emergency that requires strong leadership from Whitehall, but we’re stuck with a zombie government that is out of ideas, out of touch and out of time.
“The government eventually came round to Labour’s demands for windfall tax and once again it is up to us to set the agenda. We have a plan to get us through this crisis. The West of England has already endured a summer with a government missing in action. We cannot afford to waste any more time. We need action now.”
West of England households are paying the most in electricity “standing” charges in the whole country, it has been revealed.
Mr Norris said he was urging the government to step in after research showed West of Englanders are forking out more on the charge on monthly energy bills, which can’t be reduced by cutting back at home, than other regions, a situation the metro mayor called “wholly unjust”.
According to the BBC, the amount people in the West are paying in electricity standing charges has now risen to 49p a day – up 101% since April – the highest daily charge in the country. In contrast, in London, people are paying just 31p a day.
Standing charges are a daily fee for electricity added to your bill regardless of how much energy you use. In a letter to the government, Mr Norris said the “standing charge postcode lottery” must urgently be addressed.
He said: “Households everywhere have seen a big increase in electricity standing charges, but it seems we in the West of England have drawn the short straw and are paying even more.
“That is not fair – in fact, it is wholly unjust. West of Englanders’ were struggling enough without this extra inflated charge. Now they face a standing charge postcode lottery which is placing severe financial pressure on them during the worst cost-of-living crisis on record. It’s also having a disproportionate and significant impact on poorer households. Enough is enough. Ministers must step in to level the playing field at once.
“It should never be the case that people in the West of England have to pay even more based simply on where we live. I urge the government to reverse this huge injustice and end this energy postcode lottery once and for all”.