Citizens Advice: It is “fundamentally unfair” energy firms are charging high prices for standard tariffs

15th November 2016
Citizens Advice has said that energy firms charging much higher prices for the standard tariff is fundamentally unfair. This follows the Secretary of State for Business and Energy Greg Clark saying that he will look at evidence that it has been claimed shows gas and electricity firms make as much as 24 per cent profit from standard variable tariffs.

Gillian Guy, chief executive of Citizens Advice said  “The Secretary of State is right to look into energy firms that add to their profits by squeezing more out of loyal customers. Only 12% of customers on the lowest incomes are on the cheapest deals compared to 70% of the highest earners. It’s fundamentally unfair that energy suppliers are charging much higher prices to people who are on the standard tariff – and often have been for years – than those on fixed deals. One way to help those needlessly paying too much would be to make energy firms switch people to a cheaper deal automatically if they have been on the standard tariff for a number of years.”