Citizens Advice has welcomed plans from the energy regulator Ofgem to extend the prepayment meter safeguard tariff to 1 million households receiving the Warm Home Discount, saving them £120 a year on average.
Gillian Guy, chief executive of Citizens Advice, said:
“The proposals announced by Ofgem today should serve as a warning to energy firms that they can no longer get away with ripping off their poorest customers.
“We have long been calling for a safeguard tariff to cap bills for the poorest pensioners and families as a first step, alongside action to protect the millions of other loyal customers paying over the odds on default tariffs.
“It is right that whilst the government works to tackle the cost of default tariffs through legislation, Ofgem is taking action to make energy bills more affordable for the poorest loyal customers – and looking to extend the safeguard tariff to more of the worst off as soon as possible. Energy firms must continue to take responsibility for getting more of their customers onto better value deals over the next few months.”
Citizens Advice’s analysis has found that over the last year dual fuel bills for people on the standard variable tariff rose by £89 – three times the rate of inflation.