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Energy suppliers penalising energy efficient customers

18th December 2009 Print

New research from Confused.com has revealed that energy suppliers are failing to reward energy efficient customers.

The price comparison site's research has revealed that half of the best-buy tariffs available are ‘standing charge' tariffs, meaning a fee is applied even before any gas or electricity is used. In addition, some energy suppliers also calculate bills according to a tiered unit system, with the first units in each quarter being the most expensive, meaning energy efficient customers do not particularly benefit.

Gareth Kloet, head of energy at Confused.com, explains: "Obama and Brown are amongst the world leaders in Copenhagen this Friday as the Climate change conference reaches its climax but reducing carbon footprints is as much about the small changes that energy suppliers and consumers can make as it is about protests and negotiations with world leaders.  I believe energy providers have got it all wrong as far as tariffs are concerned.  In terms of standing charges, customers are charged the same for sitting in a house with just candlelight for heat and light, as customers who have the radiators on full blast, the fires roaring and all their lights on. The remaining four tariffs have no standing charge but the unit prices for both gas and electricity are tiered, with the first units each quarter being the most expensive, what sense does that make? In an era where green issues are very much on the agenda and climate change being discussed at the highest levels,  this is not a responsible way to do business.  Energy companies should consider reversing this tariff structure with the penalty being on the higher end consumption and reduced rates for more efficient usage."