Loyal energy customers should get 10 per cent price cut

Controversial committee chair backs energy loyalty bonuses.

Outspoken energy select committee chair Iain Wright has urged energy suppliers to offer a 10 per cent discount to loyal customers.

At a meeting of the business, energy and industrial strategy select committee this week, he said: “If people are reluctant to switch, for whatever reason, I think they should get a loyalty bonus.

“If you’ve stayed with the same energy company for, say three years, and you’ve always paid on time, why shouldn’t you get a 10 per cent reduction on your bill?”

Wright confirmed that the scope for loyalty bonuses in the domestic energy market will be something the committee, which he chairs, will look into in more detail.

The outspoken MP provoked controversy last week with his statement that energy suppliers have locked loyal customers into an “abusive relationship”. He has now said he is “keen” for the select committee to look further into loyalty bonuses as a means to ensure that energy customers get a good and fair deal.

At a committee meeting last month, both EDF and Npower said they are examining loyalty bonuses for long standing customers.

Shortly thereafter, Npower announced a 9.8 per cent price hike for its standard dual fuel tariff. Wright expressed his irritation at the timing of this announcement.

At this week’s committee meeting, Wright asked Eon UK strategy and corporate affairs director Sara Vaughan if she was keeping any major announcements up her sleeve.