Energy companies 'overcharging customers by £1 billion a year'

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Energy companies 'overcharging customers by £1 billion a year'

Mon 4th Aug 2008

Energy customers could take their utility companies to court after a report by a committee of MPs found they were breaching European Union (EU) rules on payment.

The Sunday Times reported the findings by the business and enterprise committee that energy companies are overcharging consumers by as much as £1 billion a year.

EU rules state that difference in tariffs for various methods of payment must be determined according to the cost to the supplier.

But the ten million customers who pay by cash and cheque each quarter are being charged £699 million more than is justifiable, according to the report.

Pre-payment meter customers, including ones with second homes, are paying up to £400 million more.

Lawyers told the Sunday Times that such a breach could lead to customers taking companies to court to reclaim hundreds of pounds.

Financial advisers have told consumers to switch to capped tariffs as EDF Energy and British Gas increased their gas and electricity prices.

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