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02/09/2008

Tenants In Protest Over 'Rip Off' Fuel Prices

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Over 100 housing associations across England will join forces this week to urge their local MPs to play their part in stopping energy firms ripping off their poorest customers, in one of the biggest campaign drives the sector has ever seen.

The powerful coalition, which collectively provides homes for 1.35m people, will take their fight for fairer prepayment meter charges to constituency offices nationwide in an attempt to turn the pressure up on MPs to take up their cause.

In some instances, delegations of tenants will visit constituency offices to discuss the problem with their MP. Resident groups also plan to send letters demanding action.

They hope to highlight how the country's four million prepayment meter customers can be charged up to £300 more for their fuel than those who can access the best deals online.

Despite having an average annual household income of just £16,000 a year, prepayment meter customers also face paying up to £90 more than people who pay their bills on a quarterly basis, meaning the poorest end up paying the most for their fuel.

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British Gas, Npower, Scottish and Southern Energy and EDF, have stubbornly refused to bring their prepayment meter tariffs down in line with those on standard credit - despite warnings their charges are plunging thousands of low income households into fuel poverty.

Last month, E.ON became the second of the big six energy providers after Scottish Power to equalise their tariffs. The move further weakened their competitors' argument that they need to charge prepay customers more for their fuel to cover the costs of maintaining the meters.

This week's nationwide protest will see tenants take their fight for fair prices directly to their MP, who will be asked to take the matter up directly with Energy Minister Malcolm Wicks.

The move forms the centre piece of Energy Action Week, which has been organised by the National Housing Federation (NHF), the trade body representing England’s housing associations.

David Orr, Chief Executive of the NHF, said: "People using prepayment meters are fed-up with being ripped off by the energy companies and want their local MPs to stop paying lip service to tackling the problem and actually do something about it.

"The fact that tenants from over 100 housing associations across England are planning to contact their local MPs this week, in one of the biggest campaign drives the sector has ever seen, shows the depth of feeling and anger there is on this issue – and will not go away.

"They will be demanding action from their MPs and asking what they will be personally doing to ensure the energy companies stop overcharging those on low incomes. No-one wants to hear any more excuses - either from the firms themselves or MPs. The time to act is now."

(CD/JM)

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