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Energy companies pledged today to allow customers using pre-payment meters to change energy suppliers using switching sites as one of a number of initiatives designed to tackle the growing problem of fuel poverty.
Suppliers also made a commitment to provide more information on fuel efficiency measures and social tariffs, so that vulnerable customers can easily find the cheapest energy supplier in their area.
The measures were unveiled after an energy summit between power suppliers and ministers at which Ofgem said it would examine the huge price differential between the amount paid by customers with pre-payment meters, compared with those who pay by direct debit.
Ofgem will publish an action programme early next month which will lay out a full list of initiatives that energy companies intend to take to tackle the problem of fuel poverty — when people spend more than 10 per cent of household income on energy.
The agreement reached today did not specify any extra funds for the fuel poor; instead, it is aimed at the better targeting of aid.
Sir John Mogg, the Ofgem chairman, who led the meeting, said: “Low incomes and poor housing are chief causes of fuel poverty and for government to address.
"The focus of this summit has been to channel existing resources to the best possible use and, as such, is a sound demonstration the regulator’s role."
He added that the pace of energy price increases had ended years of falling fuel poverty despite competition between energy suppliers.
"In calling this summit Ofgem has put its duty to help the vulnerable into top gear without compromising the power of the market to help those same consumers," Sir John said.
Fears that energy bills will rise again in the coming weeks on the back of soaring oil prices have added urgency to today's meeting between energy companies and ministers.
Malcolm Wicks, the Energy Minister, and Hillary Benn, the Environment Minister, met with the chief executives of the six biggest energy companies at the summit which was held against a backdrop of steeply rising global energy prices, which are feeding into higher wholesale gas and electricity prices.
Politicians and campaigners want the energy companies to do more to alleviate the difficulties that many pensioners and vulnerable groups are finding themselves in, as the average household energy bill exceeds £1,000 a year.
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