METER’S MURDER

Energy firms rip-off poor families

MILLIONS of the UK's poorest families are being OVER-CHARGED by mega rich energy firms.

Those on pre-pay meters get the WORST deals on the market, the News of the World can reveal.

Energy firms over-charging poor families
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Over the past five years the excess charges they pay amount to £500m, according to one consumer watchdog.

One of the worst offenders is British Gas. Each year the average family of mum, dad, and two kids on their standard pricing plan, paying by direct debit, will fork out £765 and £682 for electricity.

But low income families, forced to pay by meter because they cannot afford monthly bills, will be stung for an extra £121 in all.

Under strict EU directives, any difference should reflect the supplier's extra costs. But it only costs companies about £20 a year to process cheque or cash payments.

That means firms like British Gas are grabbing more than £100 A YEAR extra from their pre-pay customers.

Others feeling the pinch include pre-pay clients of Scottish Power who charge a yearly surplus of £68 for gas, and £37 for electricity. Southern Electric charge £31 more for gas and £34 for leccy.

Worst offender is on-line firm The Utility Warehouse Discount Club, which over-charges by £140 for gas and £87 for electric. By contrast, E.On and npower did not charge A PENNY extra.

Money saving expert Martin Lewis has described the two-tier charging as an "outrageous disgrace". Experts at the National Housing Federation reckon the over-charges adds up to a wicked £500m.

They urge customers to demand rebates, using format letters which can be downloaded from their website.

Meanwhile, industry regulators Ofgem say the charges are about to be pruned.

Their spokesman said: "We aim to have new, enforceable obligations in place in the summer to address undue price differences."

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