Citizens Advice has called for a ban on customers being forced onto prepayment meters by energy companies until new protections are brought into force.
What are Prepayment Meters?
Often referred to as ‘pay-as-you-go’ meters, prepayment meters are when users have to pay for their energy before using it. They mean that you can pay small amounts often to top up your energy, but they often work out as more expensive than a direct debit deal.
Users buy credit for their meter from a top up point (often found in a local shop or Post Office) which transfers money onto a card or key. Alternatively, they can top up online via an application on their phone.
Consumers have to pay a daily fee called a ‘standing charge’. You also pay this with normal meters, but with a prepayment meter you need to ensure that you have sufficient credit to pay it. This charge comes out even when you use no gas or electricity.
What is the Issue?
Many UK adults are unable to afford their energy bills and so are being forced onto prepayment meters, but then they can’t afford to top up their credit on these either!
In 2022 alone, Citizens Advice found that more people were unable to top up their prepayment meter than in the whole of the last 10 years combined. They also found that 3.2 million people across Great Britain were unable to afford to top up their prepayment meter and so ran out of credit. This equates to 1 person every 10 seconds having their energy supply cut off.
Know your Rights
If you think you can’t afford to top up your prepayment meter, you must contact your energy supplier. Ofgem rules stipulate that they must offer you emergency support.
This support includes:
- Emergency credit if your meter runs out
- Friendly hours credit if top up points are closed and your meter is running low
- Extra support credit while you work out ways to pay if you are vulnerable
It’s also worth checking out Citizens Advice’s page on rules that your supplier has to follow with prepayment meters.
British Gas Makes a Step in the Right Direction
British Gas has now said that it will stop remotely switching people onto prepayment meters through their smart meters when they fail to make utility bill payments.Chris O’Shea, the boss of British Gas, also stated that they would be adding additional vulnerability checks. This certainly seems like a step in the right direction on the road to protecting vulnerable people from being left without heat or light.
This said, they have not committed to stopping forced installation of prepayment meters in person…