Pre-payment customers missing out on £862.5 million in savings

Commenting on today’s Budget proposals to increase spending on social tariffs and treat prepayment customers fairly, Paul Schofield, head of utilities price comparison site moneysupermarket.com, said: "The Chancellor has made a clear cut move in the fight against fuel poverty with an increase of 200 per cent on spending on social tariffs – currently £50 million to £150 million.

"With only 0.11 per cent of the UK's energy giants turnover spent on social tariffs and helping those in the poorest households, it is high time more is done to help the most vulnerable households.

"The Government will also be working with Ofgem and energy providers to treat prepayment customers fairly. Customers can shave hundreds off their bill by changing payment methods. Ironically, those on prepayment meters have a hefty price to pay and will find their annual bill £172.50 higher than those who pay by monthly direct debit (see table below). With five million customers on pre-paid meters, people are missing out on £862.5 million a year in savings. I call on Ofgem to put pressure on the energy providers to support vulnerable customers and reduce prices for pre-paid customers.

"For vulnerable customers who are struggling to pay for their energy bills, help is at hand. I advise them to speak to their supplier who may be able to offer special social tariffs, give information on special discounts, winter fuel allowances or other help."