Power giants’ £900m from f ixed-rate rip-off

ENERGY companies are named and shamed today for exploiting customers by signing them up to cheap deals – then shifting them on to the most expensive tariffs.

New research reveals they are raking in about £900million by automatically switching customers to costly tariffs once their initial deal expires.

All the Big Six energy companies – British Gas, EDF, npower, E.ON, Scottish Power and SSE – feature in a top ten list of firms using ‘bait and switch’. But they insist it is up to customers to tell them if they want to be moved to another cheap deal.

Commons Energy Select Committee member Glyn Davies reacted with anger to the findings and accused companies of acting ‘dishonestly’. The Tory MP said: ‘This evidence clearly shows that energy companies are being deceptive by not making it clear to customers how much they will be paying once their deal runs out. They are taking advantage of people, like most of us, who do not know the ins and outs of switching.’

The research was carried out by energy supplier Octopus Energy. Chief executive Greg Jackson said: ‘It should be clear to the customer what they will be paying once their 12-month deal is up. It’s exploitative and not letting them make an informed decision.’

All the companies said they encouraged customers to switch to their cheaper deals.