Watchdog slams prepayment meters

New research by consumer watchdog energywatch suggests that energy companies are exploiting some of the UK’s poorest households.

Pre-payment meter customers are currently forced to pay an average of £195 more each year for their gas and electricity. In some cases, households can be charged over £300 a year more than households signed up to the cheapest online deals.

Karen Darby, founder of the price comparison and switching service, SimplySwitch, comments: "The most vulnerable households tend to have pre-payment meters and they not only pay a premium for their energy, but are left unable to choose from the full range of tariffs available. Providing they are not in debt, there is no reason why householders can’t take the lead and ask their energy supplier to change them to a standard credit meter. This will not only mean lower bills and being able to pay by direct debit, but will also leave customers free to switch to the deal that best suits their needs.

“With energy bills predicted to rise by 15 percent in the New Year, we urge prepayment customers to request a credit meter as soon as possible. This will usually be done for free and should only take around two weeks. Once they’re on a standard credit meter, they are free to switch to a far more competitive tariff. For those wishing to protect themselves from rising bills, there are some highly competitive capped deals available at present. For those with Internet access, online deals can save customers an average of £195 per year.”