Europe pulls the plug on rip-off energy charges, thanks to UK MEP - 2009-04-20

MORE than 5.9 million households across the UK will soon get a fairer deal on heating and power for their homes - saving up to £215* a year - thanks to a new EU law driven by a Labour Euro-MP.

Eluned Morgan will this week lead the European Parliament in banning unfair pre-payment meter (PPM) charges.

Around 5.9 million households across the UK currently use pre-payment meters. They are often the poorest and most vulnerable customers, yet research has shown that they pay up to £215 a year more for their gas and electricity.

Now a new EU law, driven through the European Parliament by Eluned Morgan, will ban all discriminatory pricing in the energy market, including unfair PPM charges.

ELUNED MORGAN said:

"For too long, pre-payment meter customers have been ripped-off by the big energy companies. For many years these companies have callously inflated their PPM prices and overcharged the poorest in our society to the tune of millions.

"With this new law the European Parliament has stood up for energy customers in the UK and a fair energy market. Customers who pay up-front for their energy and don't get into debt should not be penalised for it."

The new European legislation will also ensure every household in the EU must be fitted with a so-called ‘Smart Meter' by 2022. Smart Meters will ensure customers are able to better control their energy usage and increase energy efficiency as well as cutting energy costs.

It will also enshrine energy customers' right to change suppliers within three weeks, ensure consumers receive adequate information on their rights, provide for a robust complaints handling system and compel every EU country to put together an action plan to tackle energy poverty/

The new rules will come into effect within the next 18 months.

Notes:

• *According to a 2009 Transact Report
• Eluned Morgan is MEP for Wales and a member of the European Parliament's Industry, Research and Energy Committee.

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