Energy Pricing Cuts
Thursday, March 10th, 2016
It’s good news for people struggling to pay high fuel bills. A Watchdog report announced this morning that 4 million low-income households could see their power bills being cut.
The report looked into the energy industry and found out that customers were overpaying by 1.7 billion a year. 70% of customers are on the more expensive tariff. There will be a price cap for lower income households saving customers around 300 million pounds.
Prepayment meters are owned by around 4 million and tend to be owned by low income customers. Lots of households in Hawick rely on this more expensive method of paying for electricity. The main six companies, British Gas, EDF Energy, EON UK, npower, Scottish Power and SSE, all hope that these cuts will boost competition against rivals and will stop customers from paying too high of a price for their energy. The average customer will save around £300 a year if these changes are successful. They energy companies say they will send bills more frequently and will have more information on other suitable or cheaper ways of paying.