Energy firms are accused of overcharging

Published on Saturday 28 November 2009 10:02

FIVE of the "big six" energy suppliers, including ScottishPower, were today accused of overcharging customers using pre-pay meters despite new Ofgem rules.

The National Housing Federation (NHF) said the firm, as well as British Gas, Npower, Scottish & Southern and E.ON, were all breaking caps on how much more pre-pay customers can be charged than those paying by direct debit.

Ofgem imposed a limit of 88 on the differential back in September following a major investigation into whether pre-pay customers were being penalised.

The NHF said the five firms failed to meet the cap, ranging from E.ON, which charged pre-pay customers 99 more than those on direct debits, to those at ScottishPower, who paid 108 more.

EDF was the only one of the major companies that did not overcharge, the federation said.

NHF chief executive David Orr has written to Ofgem demanding an investigation into whether firms have breached their licence conditions. He said:

"The situation is an absolute disgrace."

Industry body the Energy Retail Association denied its members were infringing their licence conditions.