British Gas boss calls for social tariff and end to energy bill postcode lottery

The bosses of Centrica and E.On have called for sweeping reforms to how UK energy bills are calculated, following years of price shocks that have left millions of UK households struggling to make ends meet.

These charges are applied regardless of how much energy a customer uses, covering the other costs of supplying energy to homes, such as administration and billing, but penalising those who have cut their energy usage. O'Shea said: "What's in consumers' interests is something that is understandable and very straightforward..."He told the Energy and Net Zero Committee on Wednesday: "The easiest thing is abolishing standing charges and have no zonal pricing.

Campaign groups have called for a social tariff for several years. The proposed measure is broadly agreed to take the form of a targeted discount energy deal for qualifying low-income consumers, which is typically below the price of the cheapest available energy tariff and targeted at those living in fuel poverty or on a low income.

Separately, MPs were presented with research which found one in five people struggling with energy debt have turned to illegal lenders to pay for their bills. Campaigners told the committee that 18 per cent of people who are in energy bills-related debt had used illegal lenders, rising to 24 per cent for people under the age of 35.

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