Power firms should cut 'obscene' fuel bills, say campaigners

The "big six" companies operate social tariff regimes that should ensure the elderly and poor can afford to stay warm - but such deals are merely offered as an option.

Now there are growing calls for the poorest customers to be switched automatically to the cheapest prices available.

Pressure on the industry will be cranked up today with a demand from Unison and the National Right to Fuel Campaign for an official inquiry into the "obscene" profits made by energy suppliers.

Unison chief Dave Prentis said: "Hard-working families are desperately worried about increasing fuel bills. Pensioners are finding it a huge struggle despite the winter fuel payments that have been wiped out by these greedy companies."

Lesley Davis, chairman of the right to fuel campaign, claimed that energy company annual profit margins have soared by £2.5billion compared to three years ago.

Research by consumer group Energywatch found that the hugely profitable big six firms spend just 0.11 per cent of their £24billion turnover on measures to help households with energy bills.

It is estimated three million customers, who should qualify for the cheap rates, are paying too much.

Soaring gas and electricity bills - rises of up to 27 per cent have been announced in recent weeks - mean that millions are locked into a nightmare choice between heating and eating this winter.

Concerns about those in "fuel poverty" have been highlighted by an alliance led by Energywatch and the National Consumer Council.

Charities including Age Concern, Help the Aged, Save the Children and Barnado's are also alarmed.

The alliance has written to Energy Minister John Hutton pointing out that the number affected has doubled to around four million in the last few years.

It is urging the Government to use the Energy Bill to force firms to ensure more customers are switched to cheap social tariffs.

Personal finance website Moneyfacts.co.uk warns today that some elderly Britons will freeze to death this winter because they are too afraid to turn on their heating. It has written to industry regulator Ofgem calling on it to force the industry to switch these customers to the cheapest rates.

Spokesman Andrew Hagger said: "There is a real danger that many could freeze to death as we approach the coldest part of winter. Financial assistance in the form of lower tariffs is required."

British Gas, which has announced a rise of 15 per cent in bills, offers social tariffs to 4.67 per cent of customers, around 750,000. This is more than double the 2.28 per cent at E.on, which is placed second.

Scottish Power has 1.32 per cent on social tariffs, the figure is 1.14 per cent at EDF, it is 0.79 per cent at nPower, and 0.34 per cent at Scottish & Southern Energy.

Energywatch's Richard Bates said: "It is energy company prices alone that are causing millions to feel hardship and endure fuel poverty."