The bosses of Centrica and E.On have called for sweeping reforms to how household energy bills are calculated in the wake of price hikes in recent years. Chris O’Shea, chief executive of British Gas owner Centrica, called for a so-called social tariff, which would see the industry and the UK Government subsidise reducing bills for low-income households.
He said: “We think that in order to have the proper smart grid required to keep costs low in the future… everybody should have a smart meter. One of the things we should consider is whether this is a voluntary programme or whether this is a mandatory programme.” 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.
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. Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday, including a special cost of living edition on a Thursday - sign up here.NEW - Get our money news alerts on your phone by joining our Daily Record Money WhatsApp community.
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