Cameron backs Post's campaign on energy bills

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Wednesday, February 11, 2009
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This is Nottingham

Conservative Party leader David Cameron has backed the Post's Stay Warm for Winter campaign. Her has agreed to call on the energy regulator Ofgem to do more to protect vulnerable consumers. Political Editor Charles Walker reports.

THE energy regulator Ofgem proudly boasts on its website that "protecting consumers is our first priority". But scores of its Notts customers might dispute that claim.

Ofgem says it is "satisfied" power companies are meeting their commitments and licence obligations regarding prepayment meters and debts.

This has amazed some Notts people, who feel they have been given a raw deal by energy suppliers.

The Evening Post, with the help of local Labour MPs, has highlighted the plight of prepayment meter customers through our Stay Warm for Winter campaign.

Not only is this group more likely to be living on a low income, and paying the highest bills of all consumers, but many have also been sent big backdated bills.

They arrive "out of the blue" and saddle residents with hundreds of pounds of unexpected debt, through no fault of their own.

The debts have often built up because energy suppliers, most often E.ON in the Notts area, have failed to update the prepayment meter tariff .

In breach of industry guidelines, which say suppliers have an obligation not to backdate bills beyond 12 months, the bills can go back years. Ofgem's own conditions require tariffs on meters to be updated within "a reasonable period of time".

Trevor Cawthorne, 66, an E.ON customer and retired builder from Sutton-in-Ashfield, received a backdated bill for £750. The company reduced it by £200, which he is paying back through his meter.

He said: "It is pathetic for Ofgem to say it is looking after customers. It is a closed shop."

Ofgem has admitted to the Post that it only consulted energy suppliers before declaring itself "satisfied". Customers and consumer groups were not consulted.

The Post's campaign to win a fair deal for energy customers yesterday received two major boosts.

The leader of the Conservative Party David Cameron weighed in on our side during a visit to the newsroom.

He praised EDF Energy, Scottish and Southern Energy (which trades locally as Atlantic), and British Gas for abandoning the practice of backdating bills. He has also urged E.ON, Scottish Power and NPower to follow suit, and wants Ofgem to do more for consumers.

In an interview at our offices, Mr Cameron said: "I applaud the Post's campaign. It is incredibly important. Everyone has to do their bit and the energy companies must do their bit.

"This programme of back billing – basically charging people extra for energy they have already consumed is quite wrong. Three out of the six big suppliers have stopped doing it.

"Ofgem needs to have a really good look at this and try to put a stop to it. In many ways it is the companies' fault they have not upgraded these meters and I do not see why these people should have to pay as a result."

Mr Cameron pledged to take up the issue with Ofgem.

"My energy spokesman has been writing to Ofgem about this issue," he said. "I am going to speak to him again and make sure we turn up the heat and put on the pressure."

Mr Cameron's intervention came as Secretary of State for Energy, Ed Miliband, agreed to look at evidence gathered by the Post on the poor treatment of prepayment meter customers.

Gedling MP Vernon Coaker, who has taken up the cases of constituents, approached Mr Miliband and forwarded case work and cuttings from the Post.

Mr Coaker said: "I am not prepared to let this drop. I am determined to carry on fighting for what I believe to be right and I am pleased to say Ed Miliband has agreed to have a look at this issue."

The problem of backdated bills relates to old style 'token' meters, which have to be updated manually with new prices. Energy companies are required to replace the meters with more modern versions, which can be updated remotely. It is when the old meters are replaced that the companies become aware that a tariff is too low and it levies a bill to recoup the money.

A spokesman for Ofgem said: "Our licence condition says suppliers must make all reasonable attempts to contact a customer regarding recalibration of prepayment meters. We have no evidence to suggest suppliers are not complying with that condition.

"If customers feel they are being asked to pay a debt that is difficult for them to manage, they should expect a sympathetic response from E.ON. If not they should contact the Energy Supply Ombudsman who will investigate the matter for them."

E.ON has so far bluntly refused to change its policy on backdated bills.

A spokesman said: "Although we don't believe that a blanket write-off of all prepayment debt is the right or most appropriate solution, we have in place a clear policy to ensure that customers can manage their repayment arrangements, and that our most vulnerable customers are protected."

The Evening Post has highlighted cases in which vulnerable people claim they have not been given a sympathetic hearing by E.ON, and the company has subsequently had to waive a debt when a Notts MP intervened.

The E.ON spokesman said the company would be happy to talk to Mr Cameron's team about its policy.

Reacting to Mr Cameron's interview, Nick Palmer, Labour's MP for Broxtowe, said: "David Cameron pretends to care about helping people who are facing unemployment, but yet his plans would see £910m of cuts from the DIUS (Department for Innovation, Universities and Skills) and DCSF (Department for Children, Schools and Families) budgets, which is equivalent to cutting 220,000 apprenticeships.

"Unlike the do-nothing Tories, Labour will not abandon the people of Nottingham through these difficult times.

"That's why we have invested an additional £500m to help people who lose their jobs get back into employment. And that's why Labour is investing in an additional 35,000 apprenticeships.

"How can David Cameron claim to be concerned about training and employment budgets when his plans will see the budgets cut from the very departments that are tasked to support people back into work?"

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    by simon, noyts

    Thursday, February 12 2009, 4:05PM

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