The Energy Minister says there is "no basis" for surcharges on pay-as-you-go electricity customers.

Alex White says retailers should scrap the extra cost - which can add between 2 and 5 per cent to electricity bills.

MABS has hit out at the practice - which it says has escalated this year - as a "rip-off" of vulnerable customers.

Minister Alex White says the surcharges are not acceptable - but the Government has no power to scrap them itself.