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Energy back charges 'cause debt' | Energy back charges 'cause debt' |
(about 1 hour later) | |
A group of MPs has criticised three energy firms for "back-charging" customers with prepayment token meters. | A group of MPs has criticised three energy firms for "back-charging" customers with prepayment token meters. |
Powergen, Scottish Power and npower are accused of back-charging nearly 750,000 customers for underpayment after putting prices up. | Powergen, Scottish Power and npower are accused of back-charging nearly 750,000 customers for underpayment after putting prices up. |
A total of 131 MPs supported an early day motion which said the practice forces customers into "overnight debt". | |
Powergen said it was replacing 190,000 token meters with "key" meters which would quickly change to new prices. | |
The early day motion was put forward by Labour MP Brian Donohue. | The early day motion was put forward by Labour MP Brian Donohue. |
The industry watchdog Energywatch said that some householders are put into debt after the firms increased token meter fees to their new rates. | The industry watchdog Energywatch said that some householders are put into debt after the firms increased token meter fees to their new rates. |
The watchdog's campaigns director Adam Scorer said: "Three energy suppliers are creating instant misery for hundreds of thousands of consumers. | The watchdog's campaigns director Adam Scorer said: "Three energy suppliers are creating instant misery for hundreds of thousands of consumers. |
'Ancient meters' | 'Ancient meters' |
"People with these ancient token meters think they are paying upfront for their electricity only to find themselves in debt when the meter is recalibrated." | "People with these ancient token meters think they are paying upfront for their electricity only to find themselves in debt when the meter is recalibrated." |
Powergen said that its £21m upgrade of its prepayment token meters should be completed by the end of the year. | Powergen said that its £21m upgrade of its prepayment token meters should be completed by the end of the year. |
"During this period of change it is of utmost importance to us that we support our most vulnerable customers," it said in a statement. | "During this period of change it is of utmost importance to us that we support our most vulnerable customers," it said in a statement. |
"We will always respond to genuine cases of hardship and will deal with each situation sympathetically, on a case-by-case basis. | "We will always respond to genuine cases of hardship and will deal with each situation sympathetically, on a case-by-case basis. |
"In particular, we will agree a repayment rate as low as £1 per week and also provide support through our Caring Energy programme." | "In particular, we will agree a repayment rate as low as £1 per week and also provide support through our Caring Energy programme." |
The firm added that customers whose meters had not been upgraded by the end of March would not accrue any further debt after that date. | The firm added that customers whose meters had not been upgraded by the end of March would not accrue any further debt after that date. |
Scottish Power has also said it is replacing all its prepayment meters over the next few years. | Scottish Power has also said it is replacing all its prepayment meters over the next few years. |
Last month a cross-party group of MSPs met the firm to request it stop backdating charges. | Last month a cross-party group of MSPs met the firm to request it stop backdating charges. |
Npower has so far not responded to this story. | Npower has so far not responded to this story. |
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