1 December 2006
Following pressure from consumer rights groups, British Gas has agreed to stop backdating price rises for token prepay meter customers, joining Scottish and Southern Energy (SSE) and EDF energy to help over a million energy consumers to afford to pay their bills.
The practice of backdating was carried out to help energy providers claw back money after they had raised their prices.
Unfortunately, energy companies were slow to recalibrate the meters of this group of customers, resulting in a large bill being dumped on the doorsteps of people who use the prepay system in order to help budget their income.
It is estimated that the decision will cost British Gas £20 million, but it will pile pressure on to its rivals who still insist on backdating bills, including Powergen, National Power and ScottishPower.
Lois Hedg-peth, customer service director at British Gas, told the Mirror: "There has been a lot of public comment about this issue. We have listened and changed our approach. Customers will only pay the new electricity rates from the date their meter is changed."
Citizens Advice director of policy, Teresa Perchard, welcomed the move, saying: "I am delighted that British Gas has recognised that backdating price rises has a devastating effect on poor households and this is very welcome news for people in the run-up to Christmas."
Praise was also issued from energywatch, with director of campaigns Adam Scorer adding: "This is good news. About 150,000 British Gas prepayment consumers will no longer get the shock of an unexpected, undeserved debt...79 MPs also signed a parliamentary motion tabled by Brian Donohoe MP, which called on suppliers to end the iniquitous practice."
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