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Energy firms 'profit from poor' Energy firms 'profit from poor'
(about 5 hours later)
Energy suppliers have been accused of making some of their biggest profits from their poorest customers.Energy suppliers have been accused of making some of their biggest profits from their poorest customers.
Watchdog Consumer Focus has estimated that firms are making about half a billion pounds a year in extra charges for customers on prepayment meters.Watchdog Consumer Focus has estimated that firms are making about half a billion pounds a year in extra charges for customers on prepayment meters.
It added that 1,000 prepayment meters a day are being installed in households where people have got into debt over their energy bills.It added that 1,000 prepayment meters a day are being installed in households where people have got into debt over their energy bills.
Some customers are being forced to use prepayment meters, it also said.Some customers are being forced to use prepayment meters, it also said.
Jonathan Stearn from Consumer Focus says energy firms are using customers who pay for their gas or electricity by prepayment meter to subsidise customers who can get the cheapest deals.Jonathan Stearn from Consumer Focus says energy firms are using customers who pay for their gas or electricity by prepayment meter to subsidise customers who can get the cheapest deals.
"Companies could be making up to £550m a year from extra charges they charge on prepayment meters," he told BBC News."Companies could be making up to £550m a year from extra charges they charge on prepayment meters," he told BBC News.
They're being pushed onto prepayment meters Tony Herbert, Citizens AdviceThey're being pushed onto prepayment meters Tony Herbert, Citizens Advice
"The energy companies are making the most money out of those on prepayment meters and often those are the people on the very lowest incomes.""The energy companies are making the most money out of those on prepayment meters and often those are the people on the very lowest incomes."
The energy industry body, the Energy Retail Association, says that many people like prepayment meters because they allow them to budget effectively.The energy industry body, the Energy Retail Association, says that many people like prepayment meters because they allow them to budget effectively.
But the industry is now under pressure from the regulator, Ofgem, to cut the prepayment tariffs.But the industry is now under pressure from the regulator, Ofgem, to cut the prepayment tariffs.
Rules brokenRules broken
Tony Herbert, Social Policy Officer at Citizens Advice, says its offices have seen a small number of cases where companies have pushed customers onto prepayment meters when they have not given them other options to pay any outstanding debt.Tony Herbert, Social Policy Officer at Citizens Advice, says its offices have seen a small number of cases where companies have pushed customers onto prepayment meters when they have not given them other options to pay any outstanding debt.
He says that this is against the companies' own rules.He says that this is against the companies' own rules.
"These people have built up debt but they are not being offered a range of payment methods and they're not being offered affordable repayment rates. They're being pushed onto prepayment meters.""These people have built up debt but they are not being offered a range of payment methods and they're not being offered affordable repayment rates. They're being pushed onto prepayment meters."
Samira Naji, who lives in North London, had a prepayment meter fitted by E.ON after the firm said she owed over £700.Samira Naji, who lives in North London, had a prepayment meter fitted by E.ON after the firm said she owed over £700.
The problem was that she had been paying another supplier - EDF - for her electricity and didn't think she owed a penny.The problem was that she had been paying another supplier - EDF - for her electricity and didn't think she owed a penny.
Because of a mix-up over the meter, she was paying the wrong company.Because of a mix-up over the meter, she was paying the wrong company.
'Shocked and confused''Shocked and confused'
After weeks of disagreement E.ON got a court warrant to fit a prepayment meter, and - while she was on holiday - removed the locks to gain access to her flat.After weeks of disagreement E.ON got a court warrant to fit a prepayment meter, and - while she was on holiday - removed the locks to gain access to her flat.
When Ms Naji returned from holiday, she thought she had been burgled.When Ms Naji returned from holiday, she thought she had been burgled.
"I was really really shocked and confused. I didn't realise they could come into my property, especially if I was away on holiday.""I was really really shocked and confused. I didn't realise they could come into my property, especially if I was away on holiday."
When contacted by the BBC EDF, the company Ms Naji had been paying for the last six years, said it would refund the disputed energy bill.When contacted by the BBC EDF, the company Ms Naji had been paying for the last six years, said it would refund the disputed energy bill.
E.ON said it would write off the court costs and try and agree terms with Ms Naji to remove the prepayment meterE.ON said it would write off the court costs and try and agree terms with Ms Naji to remove the prepayment meter

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