9- March -2015
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NEWS
IT’S A RIP-OFF
Mersey MP demands end to pre-pay penalties By MICHAEL HENRY
Birkenhead MP Frank Field has called on the Government’s fuel poverty watchdog to take urgent action, after it was revealed that Merseyside is the nation’s ‘rip-off capital’ when it comes to charging for gas and electricity. A study released by the Liverpool City Region Child Poverty and Life Chances commission announced that pre-payment meters are more heavily relied upon in Merseyside than anywhere else in the UK. The study revealed that 23% of electricity customers and 21%
of gas customers are currently reliant on this payment method. Additionally, the group of Merseyside households which accounted for the 23% of electricity customers had the second highest bills on average across the whole nation. The data also suggested that more fortunate households and those who pay using Direct Debit are treated more favourably than poorer households who use a pre-payment meter. This was supported by the statistics, which stated that the average annual domestic gas bill for pre-payment customers was £759, £75 higher than the
average paid by Direct Debit customers. Similarly, the average annual domestic electricity bill for prepayment customers was £656, £55 higher than the average bills paid by Direct Debit customers. These are trends that Mr Field believes could drastically decrease the quality of life for many people in the Merseyside area, with some having to make a direct choice between fuel and food. He said: “In some cases people are left without both energy and food. A sizeable minority of those families who seek help from a food bank report that
they have no fuel with which to cook the contents of their food parcel. They simply cannot afford to top-up the meter once they get home.” In an effort to combat these damning statistics, Mr Field has proposed a plan that would see pre-payment installation and termination fees abolished. It also recommends that twoweek credit tokens should be provided to households relying on emergency food parcels, who may be unable to top up their meter, and rebates offered to pre-payment customers. Mr Field emphasised the urgency of the situation and
reiterated his belief that unless things change, the future could be bleak for those affected on Merseyside. He said: “I fear that, if the market carries on operating in its current form, Birkenhead’s food banks will continue to report that people are pleading for candles so they can have at least some light and warmth in their home. “With much of the information being shrouded in secrecy, we do not know how many companies may in fact be charging an even higher premium that extends beyond these operating costs.” • Continued on p4
CONCERNED: MP Frank Field ©Policy Exchange/ Wikimedia Commons
The New Brighteners clean for the Queen Find out more about the campaign on p2 © Jan E Peddle