Research from comparison website Uswitch has revealed that 60,000 new prepayment gas and electricity meters were installed in Britain in the six months to March, reversing a long-term decline and bringing the total to 7.4 million. The data, based on figures from energy regulator Ofgem, indicates that more households are being moved onto these meters due to the energy crisis.
Uswitch says suppliers often install prepayment meters when customers struggle to keep up with bills, as it helps control payment amounts and frequency. However, prepayment customers face higher standing charges for electricity and risk 'self-disconnecting' when they cannot afford to top up, effectively leaving them without energy.
Richard Neudegg, director of regulation at Uswitch, described the trend as 'worrying' and warned that with energy prices set to rise again in April, more households are likely to be moved onto prepayment meters in the coming months. 'Families and individuals on prepayment meters will be plunged into darkness as they self-disconnect when they can't afford to top up,' he said.
The research comes a week after the End Fuel Poverty Coalition called on the government to temporarily block forced transfers onto prepayment meters. The coalition, which includes Asthma + Lung UK, argues that current rules requiring installations to be 'safe and reasonably practicable' cannot be met this winter, and wants the government to ensure energy companies adhere to guidelines.
The government has limited energy bills through the Energy Price Guarantee, capping typical annual costs at £2,500 until next April. Without this intervention, bills would have been £3,549 a year. However, from April 2023 support is expected to be scaled back, with the Treasury focusing help on 'those in need' while reducing taxpayer costs. Uswitch is urging the government to prioritise prepayment meter customers in its future plans.
