ENERGY suppliers and the industry watchdog are still not doing enough to cut tariffs paid by the poorest members of society, according to campaigners in the region.

Energy regulator Ofgem said yesterday that firms were on track to cut more than £500m from bills – but it said it was not happy with the pace of progress.

Ofgem wants faster action from companies to put an end to the premiums paid by poorer households using pre-payment meters.

Campaigners say that “unfair”

tariffs are a major contributor to fuel poverty. Recent figures showed that one in ten North-East households live in fuel poverty, the highest percentage in the country.

Ofgem said that, since its inquiry began, premiums paid by customers – including prepayment meter users – had fallen by more than £300m.

But the regulator threatened firms with a full referral to the Competition Commission unless they moved more quickly to combat unfair pricing.

Meanwhile, Newcastlebased fuel poverty charity National Energy Action (NEA) said this was still not enough to ensure that those on low incomes could access fair energy prices.

Jenny Saunders, NEA chief executive, said: “We still have a situation where many low income households are forced to pay higher energy prices than their wealthier neighbours.

“If Ofgem is serious about helping those on low incomes, it should back calls for a mandatory social tariff. This would ensure that the poorest and most vulnerable customers can access the lowest tariffs a supplier offers, regardless of how they pay for their bill.”

According to the NEA, prepayment meter customers pay on average £119 more per year than those paying by direct debit and £257 more than those who can access online direct debit.

Ofgem published the initial findings of its energy market probe in October.

Chief executive Alistair Buchanan said: “We’ve seen encouraging signs since the end of our initial investigation but we demand more and quicker action for those customers currently losing out.”

In January the regulator will launch a six-week consultation on its proposals to change the suppliers’ licences to ban unfair prices and ensure consumer interests are more fully protected.

Members of the “big six”

UK energy firms have made announcements over lower tariffs in recent weeks.

In response, The Energy Retail Association, the body which represents the six big energy producers, said: “All the companies will be considering the concerns Ofgem has raised. However, the statement also recognises that energy companies have already invested £300m in response to the regulator’s report.”