Ali Hussain and Steven Swinford
We've made some changes
to The Sunday Times
ENERGY companies have increased the bills of low power users, including second home owners and young professionals, by more than 50%, three times their headline increases.
Npower has hiked gas bills for 30,000 customers by an average of 40%.
The worst hit customers are in the East Midlands, London and the northwest with increases of more than 50%.
British Gas raised its charges for people using low amounts of power by an average of 44% for gas and 46% for electricity. Its worst-hit customers in Kent and the Midlands have suffered an increase of 70% for electricity.
Eon raised its bills for 30,000 households using only a low amount of energy, which is charged at a higher rate, by 41%.
Allan Asher, chief executive of Energywatch, the consumer watchdog, said: “They are effectively penalising people for conserving energy.”
Low energy users are charged more per unit because power companies apply a higher tariff to the first few thousands kilowatts. They justify it by saying that it reflects the fixed costs of providing a service.
Alistair Nicoll, 55, a research manager at Sheffield University, is among those whose bills have increased dramatically.
In January, Npower raised its gas bills by an average of 17% a year. But Nicoll, who prides himself on saving energy by putting the gas heating on for just 20 minutes a day to heat his water, saw his gas bill rise by 31%.
“The house is very well insulated,” he said. “Because I am a careful user of energy I feel I have been penalised. ”
Npower sets its threshold for the first block of energy at 4,572kwh a year, while British Gas and Eon have lower thresholds for their most expensive tariffs, set at 2,670kwh.
Scott Byrom, of comparison site Moneysupermarket.com, said: “The steeper increases on tier one will mostly affect people living on their own in small flats such as young professionals or people with second homes.”
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So what's new? years ago we had a save it campaign which reduced the use of electricity ( remember the switch it off stickers) The result energy companies increased the cost of power to cover lower sales. You can't win.
Alan, Richmond, uk
If the government was serious on saving energy then everyone would get a basic allowance of units at a lower price and then pay a higher price as more energy was consumed or wasted.
Allan, Torquay,
The energy companies should go back to charging a fixed quarterly fee for the administration of customer accounts and charge only one rate for all the energy units used.
The Ombudsman should then regulate the reasonableness of the fixed fee so that it reflects actual costs to the company. It is outrageous that energy companies are making an enormous profit on administering customer accounts.
SMITH, Kent,
Isn't anyone else feb up of this country and all this rubbish!!!! 'Save the environment' is the new buzz statement!!! oh but you're not supposed to save money!!!
We we're planning on getting cavity wall insulation, plus we both work long hours so we thought we'd begin to save a lot of money!!! I don't think we'll bother now!!!! I will however bother looking into leaving this rip-off, over priced country!!!!
Sunny Smith, Egham, UK
I have just had a new boiler installed by British Gas who told me that I would save some 50% on my heating bills by having such a boiler.
I feel cheated by them.
They must have known that they were going to raise their prices dramatically for low users - which I was hoping to be, by choosing an expensive - but very efficient - boiler.
charles, London,
I am a single person with a small flat who works over 50 hours a week, so low engery users don't come lower than me. I was happy thinking that because I wasn't at home so much I was going to save money on my gas and electric, now you tell me that my bills are not going to be going down because they're jacking up the price for low energy users. It seems I can't win maybe I should give up working all together and just go on the dole.
Susan, Barry, S Wales
EDF recently had a promotional stall in my local supermarket advertising their electricity price increase as c. 8% and contrasting that with their competitors' alleged higher increases.
I challenged the salesman and pointed out that EDF had raised my bill by around 40% and I intended reporting him to the advertising standards authority for his misleading pitch.
We are all being stung by these foreign owned utilities, now.
MarkS, Leeds,