Credit checks 'could harm customers' - 18/10/2011
Electricity and gas providers could be unfairly penalising some of their customers through the increased use of credit checks on people looking for cheap energy deals.
This is according to Consumer Focus, which stated the gas and electricity sector is very different to the financial credit market as it is an essential service.
The group said the use of these checks could lead to energy suppliers imposing restrictions such as security deposits or pre-paid meters on those who have a poor credit history.
Energy expert at Consumer Focus Dhara Vyas said that as energy is a vital service, "it must not be treated the same way as other types of credit, like loans and credit cards".
It is therefore important adequate protections are put in place to ensure lower income customers, who are more likely to have had credit problems, do not end up unfairly paying more for their gas and electricity.
Last week, the organisation welcomed proposals by Ofgem to reform the UK's energy market, saying suppliers need to be open and fair to their customers.
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