Millions of households in Britain are paying £100 a year more for the energy than their neighbours – just for being a loyal customer. Shocking figures, uncovered by Labour, have revealed that nearly 4 in 10 households are still supplied by the same company from before competition was allowed. Households that have never switched pay, on average, £28 a year more for their electricity and a staggering £75.50 a year more for their gas.

Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, said:

“It’s outrageous that energy companies are cashing in on their most loyal customers. In other industries companies have all kinds of schemes to reward their most loyal customers, but in the energy market loyal customers pay most. It is difficult to explain the reasoning behind these price variations other than the fact that suppliers are charging what they think they can get away with.

“These revelations show why we need a tough new regulator and reforms to the energy market to stop these firms from overcharging. And until our reforms kick in, a Labour Government will put a stop to unfair price rises by freezing energy bills until 2017.”