Energy companies 'exploit poor'

Terrylw1

Plushchris wrote: »

Try signing here...

We the undersigned petition the Prime Minister to make gas and electricity free for the millions of people in the UK who are
classified as living in 'fuel poverty'

In Britain today more than 2 million homes are living in what
is called Fuel Poverty. That is to say, the inhabitants spend
more than 10% of their incomes on fuel bills. Britain is one of
the world's richest countries, but this year more than 25,000
people, mostly seniors, are expected to die from cold-related
illnesses. We have to stop this by helping the most desperate
members of our society.




http://petitions.pm.gov.uk/spread-warmth/

See my response to your thread:

Errrmmm...no chance.

They are offering extras to help people in this situation.

I don't think I will be signing anything that is likely to help those who don't intend to work for a living to get free supply!!!

At least through a benefits system they can be means tested.

So, when the fuel poverty line rises because Suppliers put their charges up which start to bite at the people just over the 10% line, what do you do?

Cheaper gas & elec for all, not free!

Terrylw1

BexTech wrote: »

Energy companies have been accused by an industry watchdog of exploiting some of the poorest people in society.

Customers with pre-payment meters are paying hundreds of pounds more for electricity and gas than those with access to the cheapest tariffs.
According to Energywatch, some people cannot take advantage of lower tariffs as they do not have bank accounts.

Customers on the meters are charged an average of £195 more a year than those paying by direct debit, it says.

Full Article: BBC NEWS


(Which we on here already know).

This is an old issue and it's Ofgem that are the ones holding back here!

Worth noting that all but 4 (if thats still current) inc BGas have pulled the plug on backbilling for PP charges where meters have not updated. Ofgem are being asked by Energywatch & CAB, who have countless cases of stupid case caused by this, to get Ofgem to make this illegal.

Ofgem's policy on Suppliers is that they just need to inform customers of the drawbacks of PP to satisfy their licence conditions, thats it. So, when the umbudsman lets Suppliers do what they want, you get companies exploiting people.

Whilst PP meters can be efficient for collecting debt and help some people manage their consumption better, they should not be set at the price they are.

It's well known that the cost of visits is far less than the extra gross unit charges Suppliers get form PP's. Many customers never need a visit anyway.

far

Terrylw1 wrote: »

It's well known that the cost of visits is far less than the extra gross unit charges Suppliers get form PP's. Many customers never need a visit anyway.

Could it also not be argued that companies are saving money here as, first of all, these customers cannot default over and above the emergency credit and, secondly, get paid in advance for fuel rather than supplying it and having to wait up to 3 months or maybe even more for quarterly billed customers?

Terrylw1

It's true that they are getting a more secure way of earning from customers based on cost and payment method. Companies save more on credit metering though since they need less visits & general maintenance whether withing billing systems or at site.

IMO PP should be much closer to credit metering costs or potentially the same.

Hapless_2

Plushchris wrote: »

The government, I dont know about you but if it meant I knew it would save old people from dying from hypothermia etc. then I could live with it coming out of the tax I pay.

Erm.........the elderly already get winter fuel payment of £200 which is not means tested.

Plushchris

Hapless wrote: »

Erm.........the elderly already get winter fuel payment of £200 which is not means tested.

Yeah but as I said, maybe it would be better not in the form of a payment, as that can (and probably does) get spent on other things.

Hapless_2

Plushchris wrote: »

Yeah but as I said, maybe it would be better not in the form of a payment, as that can (and probably does) get spent on other things.

But what if the person has solid fuel, a mix of coal and wood and they get it from several different outlets etc and not use electric, oil or gas for heating?
The fact that the money is spent on other things, whether on air con for their spanish winter home or xmas gifts for the grandchildren or shopping at M & S is not the govt. problem.
If they are not responsible enough, to spent the money on their heating then they don't deserve to have it.
Isn't that what some people say about single parents benefits?

Hapless_2

Imagine this, a chap goes to work and because he is fuel poor, he gets x amount of his wages in fuel vouchers. He may not pay his fuel bill with his wage. Doesn't that sound stupid?

Plushchris

Hapless wrote: »

Imagine this, a chap goes to work and because he is fuel poor, he gets x amount of his wages in fuel vouchers. He may not pay his fuel bill with his wage. Doesn't that sound stupid?

Yes, very stupid.



I have absolutely no idea what you are trying to get at, surely if he were to get vouchers then he wouldnt use his wage anyway would he?

And what kind of employer would pay you in fuel vouchers? Surely anything like that would come from the government?

Hapless_2

Plushchris wrote: »

Yes, very stupid.



I have absolutely no idea what you are trying to get at, surely if he were to get vouchers then he wouldnt use his wage anyway would he?

And what kind of employer would pay you in fuel vouchers? Surely anything like that would come from the government?

And like most things get distributed by the employer. The vouchers would be in place of wage as you say not all of the winter fuel allowance gets paid on fuel costs, the same as what should be budgeted for fuel out of someones wages probably won't get paid for fuel costs.
Fuel poverty is relative to the amount you earn.

We the undersigned petition the Prime Minister to make gas and electricity free for the millions of people in the UK who are
classified as living in 'fuel poverty'

Under that classification ANYONE spending 10% or more is fuel poor, whether they are a millionaire or on benefits. So should someone who earns £1000 a month and wastes their gas and electric have their £100 a month bill paid for by the government (and therefore the taxpayer).
I get disgusted with our fuel bills and the coal and electric we use is just £50 a month for a family of 6. As I said on a previous thread, discounting DLA and HB/CTB we get £1572 a month, yet our neighbours who earn a lot more (approx £2,000 a month) use a lot more, their bills for oil and electric are £75+ a month family of 4.
So where do you draw the line?
Free fuel for those on benefits?
Free fuel for everyone who pays 10% or more regardless of income and whether they waste fuel or no?