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Paying more for using LESS energy? Has the world gone mad?

The energy industry does its best impression of a French restaurant.

Why are people using less energy being paid more?

Why would you be charged more for using less energy? It sounds crazy but recent research has found just that…

Recent research by Which? has found that low energy users were charged up to 30% more for their gas and electricity than high users.

The findings follow a survey of what energy companies would charge households on a standard dual-fuel tariff, which found that suppliers charge low energy users more per unit than if they were charged more.

npower was the worst offender for gas, charging lower users up to 35% more per unit than high users. EDF Energy had the least , charging 13% more for lower users – although this is still significant.

This means that energy users who ration their energy will be inadvertently penalised. It also means that the split charges disproportionately affect low-income households, which make up the majority of low energy users and for whom energy bills make up a larger portion of their overall income.

Energy companies have responded by pointing out that the fixed cost of getting energy to a house remain the same, regardless of a household’s energy use. This means the current system charges more for initial energy use to cover these charges, and less for subsequent consumption.

Fuel poverty has been a rising problem in the UK, with an increasing number of households spending 10% or more on their energy bills.

It is something the government has pledged to relieve, partly with investment in renewable energy and the Green Deal, which will allow for homes to install energy saving measures such as insulation with no upfront cost.

What do you think? Are energy companies being unfair? How could they do things differently? Leave a comment below to have your say. 

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  • Lord T

    Well this country hasn’t been called Rip Off Britain for no reason. This is just one of many examples where we get a raw deal.

    Never mind fuel poverty. If we sorted out tax poverty we would be in a much better situation.

  • David Glen

    We get what we deserve. Who else would pay a tax to have a hot meal, a hot bath or shower, to have light when it’s dark and to keep warm when it’s cold. We don’t really need the ‘to keep cool when it’s hot’ do we? These are basic human rights and to have to pay a 5% tax is probably illegal under the UN Charter. Are there no lawyers out there with the cajones to take the government to task over this? And while there at it they could tackle that other iniquity, the tax on a tax. I refer to the VAT charged on Fuel Duty which of itself is the main fertiliser of monetary inflation. The government keeps these vast earners because they know how stupid the British Public really is.
    As I said, we get what we deserve.