Martin Lewis has warned that prepay energy meter customers are paying a 'poverty premium', with typical annual bills of £1,140 from big firms. He described the situation as a 'national disgrace', noting that many of society's poorest are forced onto these tariffs.
However, Lewis highlighted two cheaper fixed-rate tariffs that can save money. The cheapest, from iSupply, costs £1,020 for typical usage and is fixed for a year. Alternatively, EDF offers a fix until October 2017 at £1,040. Both require topping up via card or key. Lewis advises using an Ofgem-approved comparison site or his Cheap Energy Club, which offers £30 dual-fuel cashback.
On smart meters, Lewis addressed a reader's question about British Gas installations. He said having a smart meter does not prevent switching supplier, but you may lose smart functionality if you move to a supplier with incompatible technology. He suggested British Gas is rolling out meters faster than others as an incentive to keep customers.
Lewis also clarified that renters who pay energy bills directly can switch tariff, even if in energy debt up to £500. Switching to a billed meter could save hundreds more, with full details at mse.me/ditchprepaymeter.
