A cross-party group of over 150 MPs have signed a Commons motion calling for energy companies to stop setting higher charges for customers on prepayment meters.

The six main energy companies are in the middle of a price war. But their lowest earning and most loyal customers, those who pay with a key or token meter, can pay up to £188 more per year for their energy than a customer paying by direct debit. They can pay up to £133 more than quarterly billed customers (1).

The National Housing Federation has been trying to get energy companies to charge customers the same amount for gas and electricity whether they pay by prepayment meters or are billed.

MPs are backing the campaign by signing Early Day Motion (EDM) 990, "Fuel poverty and pre-payment meters", tabled by Alan Whitehead MP.

Housing associations around the country are sending postcards to local MPs calling on them to sign the EDM, and writing to suppliers to demand they bring prepayment meter tariffs into line with standard credit charges. An estimated 30 per cent of housing association households have a gas prepayment meter; an estimated 43 per cent have an electricity prepayment meter.

David Orr, chief executive of the National Housing Federation, said:
"The energy companies might be knocking down their prices but they are still fleecing prepayment meter customers. MPs of all parties share our belief that this rip-off has to stop.

"Too often, the poor pay more for the kind of services most people take for granted. Prepayment meter customers pay over the top even though they settle their bills up-front and rarely switch supplier.

"Energy companies should bring their prepayment meter tariffs into line with their charges for standard credit consumers. They should absorb any additional overheads themselves rather than passing them on to their poorest customers."

More information on http://www.housing.org.uk