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Citizens Advice says it is “fundamentally unfair” that energy firms are charging much higher prices for standard tariff

14 November 2016

Citizens Advice has today 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.”

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Notes to editors

  1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
  5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.