The British Gas boss has called for a "social tariff" and an end to the energy bill postcode lottery. Chief executive of British Gas owner Centrica, Chris O'Shea, called for a progressive social tariff alongside EOn boss Chris Norbury today.
Mr O'Shea said: "What's in consumers' interests is something that is understandable and very straightforward..." He told the Energy and Net Zero Committee on Wednesday: "The easiest thing is abolishing standing charges and have no zonal pricing. And then have a progressive social tariff. Why do people have to play a postcode lottery?"
He went on, saying: "We think that in order to have the proper smart grid required to keep costs low in the future... everybody should have a smart meter. One of the things we should consider is whether this is a voluntary programme or whether this is a mandatory programme."
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Mr Norbury added: "The support that exists for those customers who are on very low incomes does not go far enough... We have called, for example, for a social tariff to support those customers who need it most."
It comes after research found 18 per cent of people who are in energy bills-related debt had used illegal lenders, rising to 24 per cent for people under the age of 35. Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: "The findings are horrific and worse than experts had feared.
"Energy debt is forcing households to wake up in the morning scared of the consequences of using electricity or gas. Energy bills and energy debt are a fundamental part of our broken energy system which has led to the cold damp homes crisis we saw this winter.
"The long-term solutions are obviously wider than changes to standing charges and tariff reform. We need to see more insulation, ventilation, unblocked cheaper renewables and weaning ourselves off oil and gas to improve energy security."
