Dr Alan Whitehead, Labour MP for Southampton Test, this week joined a cross-party group of MPs in support of the Equalisation of Tariffs for Gas and Electricity Bill, designed to prevent energy companies from charging their poorest customers more for their energy.

Many of the UK’s poorest households pay for their gas and electricity by prepayment meter because the uncertainty of their income means they are unable to afford quarterly bills. However, many energy companies, such as British Gas and Scottish and Southern Energy levy an extra charge on customers who choose to pay this way. The National Housing Federation estimates that around 1.5m households are still being charged £40 extra a year more for gas than customers who pay via quarterly bills.

Energy companies make an extra £50m a year through the excess charge they force prepay customers to pay - even though they have an average household income of just £13,500. If the Bill, which was presented by Labour MP John Austin, is selected in a ballot later this year all energy companies could be forced to drop the premium price that they currently charge their prepayment meter customers.

Speaking from Westminster Alan Whitehead explained why he is supporting the Bill:

“As a long-term campaigner against fuel poverty I am fully supportive of this Bill which, if passed, would substantially cut the energy costs for the UK’s poorest consumers. Over half a million of the households that currently pay the premium are in fuel poverty, 1 in 3 are lone parents with dependents and 1 in 3 are people with long term illnesses or disabilities – in other words the most vulnerable people in our society.”

The Test MP added: 

“The system of ‘poor pay more’ must end. I want to ensurethat low-income households are only paying a fair price for their gas and electricity and not the energy companies’ inflated premiums.”

National Housing Federation chief executive David Orr welcomed the bill and said a new law was the only way of ensuring energy companies stopped overcharging their poorest customers.

"The energy companies have shamelessly ripped off their poorest customers over many years and at last this group of MPs is taking a stand by proposing a bill which would outlaw this blatant discrimination between different customer types.

"Millions of low income families are already struggling to make ends meet during the recession. Hitting them with the very highest fuel tariffs in the market is simply not acceptable and must be outlawed."