FAMILIES on low incomes in East Lancashire are set to lose out when gas and electricity companies are opened up to competition, say council bosses.

Experts are predicting some fuel bills will fall by a quarter when the utility companies are deregulated next year.

But Blackburn with Darwen Council leaders claim only well-off families will feel the benefits.

And the town hall has also warned the cuts will be short-term with bills set to rise again over the next few years.

Homes in Blackburn and Darwen are set to be bombarded with a tidal wave of leaflets and publicity from companies eager to sign up new customers.

Companies like British Gas and Norweb are facing competition for the first time from other fuel suppliers.

But discounts of between 20 and 25 per cent are only being offered to people who agree to pay through direct debit or at the end of each quarter. Families with pre-payment meters will be the biggest losers and will still pay more than most customers.

And people who do not have bank accounts will not be offered special discounted rates for fuel.

Rights, advice and entitlements chairman Maureen Bateson said: "The changes mean that more organisations will have the opportunity to become fuel suppliers and will no doubt be mounting intensive campaigns to attract customers.

"It is important that people make sure that they are getting the best deal for themselves when deciding whether to change suppliers and do not just rely on advertisements."

People are being warned not to sign up for contracts unless they understand the small print.

Coun Bateson added: "If anyone is in doubt about what to do, staff at the council's advice centre in Ainsworth Street will be happy to offer useful information."

Blackburn with Darwen Council is planning to work in partnership with the new companies but will not set up its own company.

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