Energy tariffs 'penalise low users' - 11/10/2011
People looking for cheap gas and electricity prices may find it's harder to get good deals if they're low users.
According to the Financial Times, the tariff structure employed by the major suppliers means that energy becomes cheaper the more a household uses, which could mean those who do not have high consumption end up paying disproportionately more.
Consumer group Which? estimated that individuals classed as low users may see gas prices that are 23 per cent higher per unit than heavy users, while for electricity the figure is 14 per cent.
Policy adviser at the organisation James Tallack said the structure is "socially regressive", adding: "Where you have energy that gets cheaper the more you use, that doesn't send a strong message to reduce your consumption."
Recently, energy minister Greg Barker told Which? that it is important Ofgem works to reduce the complexity of tariffs to make bills easier to understand.
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