Sunday, August 24, 2008

Tories unveil plans to cut household energy bills by £100

George Osborne and Alan Duncan have announced plans to reform the Post Office Card Account (POCA) and potentially reduce the energy bills of up to four million people by £100.

Under our proposals, families without bank accounts will be able to use their POCA to pay utility bills using the equivalent of a direct debit. This will enable them to benefit from the lower energy and water tariffs offered to customers paying by direct debit.

This measure, which has support from leading utility companies, will generate significant savings for energy companies through lower collection costs, which can be passed onto consumers in the form of lower bills.

George Osborne, the Shadow Chancellor, stressed reforming the POCA would tackle the unfair situation whereby the poorest households end up paying more for their energy and water bills.

And Alan Duncan, the Shadow Secretary of State for Business, Enterprise and Regulatory Reform, described the measure as "a significant weapon for attacking the growing pain of fuel poverty."

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