ENERGY FIRMS 'PROFIT FROM THE POOR'

Consumer Focus (CF) said it estimated power suppliers were making more than half a billion pounds a year in extra charges from people on pre-payment meters. Typical customers using the devices were often those on the lowest incomes, it added.

Jonathan Stearn, CF's campaigner on disadvantage, said energy firms were using customers who pay for their gas or electricity through pre-payment meters to help subsidise cheaper deals for others.

He told the BBC: "Companies could be making up to £550 million a year from extra charges they charge on pre-payment meters.

"The energy companies are making the most money out of those on pre-payment meters and often those are the people on the very lowest incomes."

Energy awareness group National Energy Action (NEA) said pre-payment metered customers paid on average £359 more a year than those with normal meters.

This contrasts with the extra annual cost of between £85 and £100 to maintain the pre-payment boxes - a sum estimated by energy industry regulator Ofgem, the charity added.

An NEA spokeswoman told the BBC that 1,000 people a day are being put on pre-payment meters, with many forced to do so after falling into debt.

She added: "Once you are in debt you are effectively blocked from switching to cheaper deals."

Ofgem has estimated that pre-payment meter customers are missing out on savings worth £250 million.