The National Housing Federation (NHF) has welcomed the announcement by Energy Secretary Ed Miliband that he is ready to legislate to force the energy companies to introduce fairer pricing for prepayment meters customers, if the firms do not do so voluntarily.

However, the Federation has warned that under Mr Miliband's plans prepayment meter customers would still end up paying up to £88 more than anyone else.

This is because Mr Miliband has made it clear he will be working towards measures announced last week by the energy regulator Ofgem, which said that while the energy firms were charging prepayment meter customers too much - it is legitimate to charge an extra £88 to cover the cost of maintaining the meter.


Mr Orr said: "It is excellent news that Ed Miliband has quickly come to the conclusion that the prepayment meter rip off is unacceptable.

"But even with the measures he envisages, prepayment meter customers will still pay as much as £88 more than others, as Mr Miliband seems to have accepted the argument by the energy regulator Ofgem that a premium for maintaining the meters is acceptable.

"Customers who pay up front for their energy should not be penalised simply because they pay via a meter, especially as they are among the poorest in society.

"What Ed Miliband needs to do now is force the energy companies to charge prepayment meter customers the same as those on quarterly bills, which is the only fair way to tackle this issue.

"Prepayment meter customers are among the poorest people in society and it is time that they were brought in from the cold."

(CD/JM)