Fuel Poverty Action has sent a letter to Ofgem challenging new discriminatory policies in advance of this Friday’s price cap rise. Fuel Poverty Action reports that the administrative costs of taking on customers from failed energy suppliers has been loaded onto the fixed, standing charge element of energy bills, which nobody can escape. It puts lives at further risk as people who are already rationing heat and power are forced to pick up the tab for industry failures, which Ofgem sanctioned.
Fuel Poverty Action’s co-director Ruth London said, “Why have Ofgem decided to make the poorest customers pay for their bad decisions and for bad practice in the industry? This huge injustice must be urgently reversed. Then standing charges should be ended, and we should move instead to Energy For All, a pricing structure where everyone will get enough energy free to cover their basic needs for heating, cooking, and power.”
She adds, “Prepayment meters are another way that people with the least resources — and often with the leakiest, most poorly insulated homes — are forced to pay the highest price for fuel. These meters are often imposed without consent, cost more than direct debit, and have the effect of cutting people off supply. As prices increase, it is absolutely urgent to end such upside-down policies.
“The support offered by the government – essentially a loan that customers will have to pay back, and some help for council tax payers – barely scratch the surface of what is needed. Much more drastic changes are urgent, to ensure the basic right to warmth.”
The move away from standing charges is a step towards the new pricing structure: Energy or All, a basic supply of energy free to all, to cover needs like heating, lighting, and cooking.
Energy for All has gained momentum rapidly with over 300,000 signatories on a petition launched by Fuel Poverty Action. Signatories have joined Fuel Poverty Action in writing to Ofgem and have so far sent 1,200 letters to CEO Jonathan Brearley.
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