Miliband meets energy giants

Concerns surround pre-pay meter users and people denied deals

Energy Secretary Ed Miliband has met key energy providers ahead of their 1 December deadline to take voluntary action to prove prices are fair.

Companies have to show they are not over-charging pre-pay meter users.

They will also explain why special deals are only extended to people on dual tariffs, excluding those who only have access to one utility.

Mr Miliband has threatened companies that, if they fail to act voluntarily, the government will take legal action.

'Extreme volatility'

He met representatives from British Gas, E.On, EDF, Npower, Scottish Power and Scottish and Southern Energy.

A Department for Eenergy and Climate Change spokesman said: "The government and the industry agreed on the need to bring down retail gas and electricity prices.

"The meeting also recognised the significant investment needs of the industry and the extreme volatility we have seen in energy prices in the last 12 months."

Last month, Mr Miliband said he expected "rapid action or explanation to remedy any abuses".

Energy regulator Ofgem has given energy companies until the beginning of December to come up with a set of proposals to bring energy prices down.

The DECC spokesman said: "The companies have each committed to responding positively to the Ofgem probe and have reaffirmed their desire to ensure that all price differentials are broadly reflective of underlying cost."

In general, people who use pre-pay meters tend to be on low incomes.

There are also concerns that people who are not on the gas network are denied the special deals afforded to customers who are able to get both gas and electricity from the same supplier.