Ten million energy customers could have grounds to sue gas and electricity companies for overcharging them.

People who pay for gas and electricity by cash, cheque or by pre-payment meters are being charged hundreds of millions of pounds more than they should be, a parliamentary inquiry found last week.

 

That could put the energy firms in breach of European Union rules on price-setting.

MPs on the Industry Committee estimate the scale of the over-charging at more than £1 billion a year.

 

The MPs found that bills for "standard credit" customers using cash or cheques were on average 11 per cent higher than for those on direct debit worth £89 a year. The gap was only £37 in 2004

 

Customers using pre-payment meters are paying £144 more a year.

Energy companies insist that the higher prices paid by cash and meter customers simply reflects the higher costs the firms pay to process such payments.

 

But Ofgem, the energy regulator, says the cost to firms of processing standard credit payments is just £20, meaning customers are being overcharged by £69 a year. For meter payments, it was £85, an excess charge of £59.

 

Ofgem is also scrutinising the extra charge made to some customers, and has the power to cap the excess charges.

 

The regulator will publish a major report on the energy sector next month, which is expected to severely criticise the firms over the practice and encourage customers to apply for refunds.

 

According to Tom Brennan, the public law barrister who brought a test case against a high street bank for charges applied to customers' accounts, customers may ultimately be able to use a 2003 EU directive on fair pricing to sue for their money back.

He said: "It would suggest the consumer could and should bring these claims to a court if they cannot obtain a refund from their supplier."

 

 

Source: Sunday Telegraph

 

I have always thought it disgraceful that these giant energy companies can get away with effectively charging more to the poorest in society for their energy.

Absolute fukkin' DISGRACE..... <_< No wonder these c/unts are making such huge profits....

 

Now more than ever, I want to see these companies Re-Nationalised.....

 

..Obviously, customers should be suing these people (and I shall be very carefully reviewing my own bills in the light of this to see if I have grounds myself to get money back)... They have absolutely no problems screwing us do they......?

Well hopefully millions DO sue the energy companies :cheer: