European Parliament wins big victories for consumers

It’s been a week of good news for consumers after this week's voting session in the European Parliament resulted in the adoption of new rules which will save millions of people money.

First, and most importantly, is the news that energy suppliers will no longer be able to charge a premium to people who pay for their gas and electricity on prepayment meters. Currently people who use their prepayment meter for both gas and electricity will pay on average an extra £215 a year more for their energy than people paying by direct debit. This is a patently unfair system, all the more unjust when you consider that you are a third more likely to buy your energy with a prepayment meter if you have a disability, live in social housing or are a single parent.

This practice will now end thanks to this week's vote in the European Parliament, a decision which will reduce bills for millions of people living in Britain who pay for their gas and electricity with a prepayment meter (there are 5.9million meters in the UK alone).

Along with the end to price discrimination, the new rules effectively give a bill of rights to energy consumers. Customers will be given the right to change their gas and electricity suppliers within three weeks and free of charge, be able to claim compensation in cases where people are given inaccurate or delayed bills. Finally, 80% of consumers across Europe must have access to energy-efficient SmartMeters for electrical appliances.

Mobile phone users will also save money after further caps were agreed this week for people using text messages and downloading data while abroad.

Back in the summer of 2007 a maximum tariff for people making or receiving phone calls abroad was introduced, and a ceiling price for data and text messages will come into force on July this year while receiving and making abroad will once again drop.

The cost of sending a text message while abroad will not be able to exceed 11 cents form 1st July this year while one megabyte of data (which is used to send emails and pictures and for web-browsing from mobile phones or laptops) will be limited to one euro (prices do not include VAT). By July 2011 this will drop to 50 cents.

In the past people have ended up with astronomical bills into tens of thousands of pounds (see here) by downloading programmes and games abroad because there was simply no warning or limit to how much they were spending. The new rules will give people the opportunity to impose a limit on how much they download abroad, a service people will have to opt out from by 2010.

Once again the European Parliament, thanks in part to the work of Labour MEPs, has stood up for the rights of consumers against big business, leaving ordinary people with more money in their pocket.