Ofgem has been accused by the National Housing Federation (NHF) of condemning vulnerable customers to a 'miserable Christmas' by failing again to force the big energy companies to stop charging poor customers who use prepayment meters more for their fuel than the more affluent.

Ofgem claimed that it was on track to remove £500m in unfair premiums to prepayment meter customers, but three of the big energy firms have still refused to lower the prices they charge to their poorest customers for gas.

British Gas, EDF and Scottish and Southern Energy are continuing to charge their prepayment gas customers up to £50 more a year than those who pay their bills on a quarterly basis - despite the fact most of them come from the most vulnerable sectors of society, including those on low incomes and single parent families.


However, even though the Prime Minister, Chancellor and Energy Secretary have all promised tough action Ofgem confirmed that it was merely planning to consult on changing the energy companies' licenses to prevent them continuing to rip off prepayment meter customers.

And even if Ofgem does finally succeed in getting the energy companies to lower their prepayment meter charges - prepay customers would still end up paying the most for their fuel.

Under Ofgem's plans, energy firms will be allowed to charge prepay customers around £80 more than those paying their bills via direct debits - to reflect the alleged cost of maintaining the meters.

NHF Chief Executive David Orr said: "Ofgem's announcement makes Scrooge look like Santa Claus. Quite simply Ofgem has today condemned hundreds of thousands of vulnerable households to having to pay more for their energy than those who are more affluent - simply because they use a prepayment meter.

"This was Ofgem's big chance to bring some festive cheer to vulnerable households across the country, but they have quite simply sided with the pinstripe pirates once again.

"We have had talk all year long that the practice of charging prepayment meter customers more for their energy would be outlawed, and yet we will be going into the New Year with this disgraceful practice still being allowed.

"Ofgem's dithering and inability to bring the fat cat companies to book will come as a hammer blow to low income families, many of whom will this Christmas face a stark choice between heating and eating."

(CD/JM)