Power giant penalises pensioners

A POWER company is kicking thousands of elderly customers off a cheap tariff they had hoped would keep them warm through the winter months.

Power Gen lured the customers, including many belonging to support groups for retired servicemen, to its Staywarm package with promises of lower bills.

But it is writing to as many as 35,000 to say they are being put on a different billing regime.

With the decision set to raise the elderly householders' annual bills by as much as 75%, there are concerns that some will reduce their consumption as a result rather than run up bills they can no longer afford to pay.

The benefit of the Staywarm scheme was that it offered gas and electricity for a low fixed price, depending on the number of individuals and bedrooms per household.

Consequently it was recommended by groups which support the elderly.

However, PowerGen has introduced criteria to limit the numbers who qualify for the cheap deal. Those who use more gas and electricity than PowerGen deems acceptable are effectively axed from the scheme, unless they can show they are receiving certain State benefits.

Power industry consumer group EnergyWatch is infuriated by PowerGen's step. There are questions over whether the company can change the rules of the offer, which attracted some 350,000 customers.

Spokesman Adam Scorer said: 'We are getting many calls from pensioners worried that they won't be able to keep warm.'

He added that Energywatch was 'dismayed' by the heartless nature of the letters to those taken off Staywarm. 'PowerGen's actions fail the basics of customer care and good manners.'

Keith Robinson, 76, Surrey secretary of the Soldiers, Sailors, Airmen and Families Association said he felt duped. He added: 'We were approached by PowerGen. I encouraged our case workers to draw attention to the deal. I also decided to sign up to it myself. But I have been told I am no longer welcome.'

He claimed the shift would increase his monthly direct debit from £44 to around £77.

'It's a con-trick,' he said. 'I am able to shop around, but there may well be thousands who will find that is too difficult.'

A PowerGen spokeswoman conceded the cap on consumption would affect up to 10% of households on the Staywarm tariff. She said high users had been jeopardising the product for the most vulnerable.