The Consumer Futures Unit of Citizens Advice Scotland has welcomed today’s proposals from Ofgem, while arguing that more needs to be done to help people in fuel poverty.
Craig Salter, energy spokesperson said:
“This announcement represents a step towards ensuring that vulnerable energy consumers in Scotland get the support and protection that they need, as well as helping them engage more in the market. The CMA’s investigation has highlighted the failure of market competition to serve those on prepayment meters (PPMs), and it is encouraging to see Ofgem taking action to address this.
“Scotland has a higher proportion of consumers on PPMs than the rest of the UK, and so this announcement is of particular relevance to consumers here.
“When taken along with the fact that PPM customers are more likely to be disengaged from the market, have less access to lower cost tariffs than those using other payment methods, and are more likely to be fuel poor and in vulnerable situations, it is clear that this measure is an important step forward to ensuring that vulnerable consumers in Scotland are not paying too much for their energy.
“While this is not a long-term solution, and much more needs to be done to support all vulnerable consumers on all payment methods, it is a step in the right direction. The impact of this measure has the potential to make a positive difference to the lives of many of the most vulnerable households in Scotland.”