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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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Labour dither while energy companies squeeze the poor
October 3, 2008 12:00 AM
A National Housing Federation survey has concluded that energy companies are making an excess profit of £1.35bn by charging extra to those households who use pre-payment meters.
These meters are used by many on low incomes throughout Wales. According to Welsh Liberal Democrat Social Justice Spokesperson, Peter Black that amounts to a tax on those who do not have bank accounts and whose financial situation means that they have to ration their use of gas and electricity.
Mr. Black said:
"Energy providers adjust the cost of energy bought by this method in order to make sure that it is kept well above the prices they charge to other better off customers. They are squeezing the poor to boost their profits. Each and every low-income household is worth an extra £113 a month to these modern-day robber barons.
"The excuse the energy companies often use is that pre-payment meters are more expensive to run. Yet the National Housing Federation survey discovered that a typical meter costs just £85 a year to maintain.
"Last month the government said that if the companies didn't address this issue themselves then Chancellor Alistair Darling would use his reserve powers to make them. Yet winter is coming, and Labour has done nothing.
"Quite obviously, the energy companies are not going to do anything on their own. It is time for the Labour Government to stop dithering and take urgent action to force them to play fair."
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