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MEPs come through for UK utilities customers

12:55 Fri 09th Jul 2010 |

While moaning about being 'governed by Brussels' has become something of a British way of life over recent years, it's doubtful that households currently struggling with their utilities bills will find reason to complain about new EU plans for gas and electricity payments.

With millions of households across member states, including of course the UK, currently finding themselves trapped in fuel poverty, whereby ten per cent or more of their monthly income goes on fuel bills, MEPs are set to give the green light to proposals to cut bills for those consumers on pre-pay meters.

Under the new legislation, 'smart meters' will be installed in all homes within the EU by the end of 2022, with campaigners arguing that, while this may be some way off, at last consumers are being put first, rather than the continent's energy giants.

Furthermore, member governments will be required to draw up plans to bring an end to fuel poverty and promote energy efficiency in the home and help those consumers savvy enough to save money by switching utilities suppliers to shrink their bills further still by opening up the market

"For the first time we have put the issue of energy poverty on the European agenda," explained Eluned Morgan, Labour MEP and a leading author of the report behind the new legislation.

"This could lead to the prevention of hundreds, if not thousands, of deaths in the poorest households.

"We will also see an end to the dreadful practice of charging the poorest customers more through discriminatory pricing for pre-payment meters."

On the downside, this decision was reached on the back of some serious negotiating with some of the continent's biggest energy companies, with the likes of E.On and EDF no longer required to sell off their power grids and pipelines as had previously been the case

Given that such a separation of suppliers and transmission systems was seen as the ideal means of boosting competition levels in the energy sector, and thereby helping consumers to benefit from lower bills, this development means that shopping around for the best deal and switching utilities supplier whenever possible will be necessary for some years yet.

If this news isn't enough to cheer up even the most pessimistic utilities customer, then maybe the fact that the government's new 'Great British Refurb Plan' is expected to significantly cut average bills over the next few years may do the job.

According to energy and climate change secretary Ed Miliband, the initiative, whereby some seven million UK homes will be given financial assistance in upgrading their energy efficiency abilities, will require little effort from consumers themselves - much the same as switching utilities suppliers.

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