Ofgem calls on energy firms to do more for poorer customers

Energy companies are being warned that they should not be advertising "social tariffs" as being useful to poor customers if they're not the absolute cheapest deals on offer.<br/><br/>

Energy companies are being warned that they should not be advertising "social tariffs" as being useful to poor customers if they're not the absolute cheapest deals on offer.

Energy watchdog Ofgem has lambasted the big six energy suppliers after it found that not one of them complied fully with its rules regarding the ability to claim a tariff is helping the poorest consumers.

Suppliers are being found to offer subsidies to those suffering from fuel poverty, but are being told that they can no longer advertise this as a social tariff unless the subsidies make it as cheap as the company's cheapest tariff.

Sarah Harrison at Ofgem said: "Tightening the definition of a social tariff assures eligible customers that they will be on their supplier's best tariff in their area."

In a response to being singled out as the worst offender of the six major energy companies, British Gas issued a statement regarding there success so far.

Claiming the company will be scrutinising the policy from Ofgem closely, the statement read: "British Gas introduced the first social tariff, Essentials, which makes a significant and recognised contribution to addressing fuel poverty with 350,000 accounts already benefiting from reduced prices and will cost us £34m this year alone."

The number of those suffering from fuel poverty - spending ten per cent or more on energy each month - is expected to jump sharply this year as homeowners are facing the possibility of annual gas bills of over £1,000 per month.