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Energy suppliers biggest profits from poor

20/11/2008

Consumer Focus, the new consumer watchdog, has claimed that energy companies are making their biggest profits from poor customers with pre-payment meters.

The watchdog estimates that energy suppliers are making over half a billion pounds in extra charges from such customers.

It also says that around 1,000 pre-payment meters are being installed every day in the homes of customers who have fallen into debt on their energy bills.

According to the BBC, energy regulator Ofgem is putting pressure on energy companies to cut their pre-payment tariffs.

A spokesperson for Debt Advisers Direct said: “It’s an unfortunate fact for people in debt that energy through pre-payment meters can cost more than through typical mains gas or electricity connections. Although they can help households to budget, the added cost is something that needs to be taken into consideration – especially by those who have previously been pushed into debt by their bills.

“Some households are not given the choice once they have fallen into debt, though – and those people may feel it is unfair that heating their home becomes more expensive. They will hope that this announcement from Consumer Focus could encourage energy companies to reduce their pre-payment prices.”

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according Rising household costs could pressure people in debt 10/08/2010 - The UK may be about to see a rise in