Gosport MP Caroline Dinenage backed a motion in Parliament yesterday condemning rip-off charges that hit customers who don't pay their energy bills by direct debit. With companies charging upwards of £70, MPs have looked into the matter and found that many firms are using these charges as a stealth tax on hardworking families. Of 26 companies, a shocking 17 charged their customers different rates depending on how they pay their bills.
Commenting, Caroline said,
"These charges often hit some of the most vulnerable people in the country – including those 1 million people who don't have bank accounts. I think it is totally unfair that energy companies are boosting their profits with these disproportionate fees, so I strongly supported the motion to limit these charges.
In the debate I made the point that companies should instead be using some of their profits to invest in new technologies to help families on prepayment meters and give them more options when it comes to topping up their meter.
Energy companies should not be making money off the backs of some of the poorest people in the country, and I think it is absolutely right that the energy regulator, Ofgem, looks into this matter as soon as possible."
Almost half – 45% - of customers do not pay their bills by direct debit, with companies such as British Gas and EDF then charging these households an extra £73. Eon charge their customers £70, SSE £80, while Npower hit families with an £90 fee. One company – Spark Energy, levies a staggering £390 extra charge.
