17 June 2009
Customers who are overcharged for using prepayment meters could be better protected by Ofgem, it has been said.
The market is largely uncompetitive, noted Zoe McLeod, Principal Policy Advocate at Consumer Focus, which gives providers little incentive for them to introduce new technologies and become more efficient.
However, with the Housing Federation recently reporting that prepay customers are being charged £464 million over three years, she believes consumers need to see an improvement.
"We have seen the difference in cost between prepayment and direct debit come down by a third but we still think there is more that Ofgem could be doing," claimed Ms McLeod.
According to the Housing Federation, the overcharges are potentially a breach of EU regulations, as many customers between 2006 and 2008 were charged extra for installing and maintaining the meters.