Age UK has said that customers should have the right to remove pre-payment meters, arguing that those who have them instead of credit meters end up paying more for gas and electricity.
The call comes after revelations that British Gas had forced entry into the homes of some vulnerable people to fit such meters, a move that prompted regulator Ofgem to suspend further installations while it investigated the issue. Age UK wants the forced installation of prepayment meters to be abolished.
Age UK said research has shown that over half a million older households, which make up a quarter of all pre-payment meter customers, have to pay this way. Moreover, 85 per cent of the older households with prepayment meters are classed as living in poverty.
With higher costs and the risk of electricity and gas supplies being suspended immediately when the money runs out, the charity said this amounts to “disconnection by the back door”. Describing this as an “outrageous situation”, it said it had been contacted by older people who have been “sitting in the cold and the dark because they can’t afford to keep their energy switched on.”
Head of policy at Age UK Christopher Brooks told the BBC everyone should be given the option of switching away from prepayment meters, claiming: “It is often unfairly penalising some of the poorest people in our society and forcing them to pay higher costs for their energy.”
However, Energy UK, a body representing suppliers, disagreed with Age UK’s calls. A spokesperson said: “It’s accepted that it’s bad for customers to be falling further and further into arrears which is why suppliers are required to take steps to prevent it.”
As Ofgem considers what to do about the issue in the light of the difficulties many face paying their energy bills, those with electric boilers may find getting them serviced or repaired to be more efficient can go a long way to cutting their costs, whether they pay on a credit meter or a prepayment meter.
There is some positive news for householders as the anticipated rise in the Energy Price cap from £2,500 a year to £3,000 in April looms, with energy firms saying they have been told to prepare for this increase to be abandoned as government help could be extended.
Speaking to the Evening Standard, a Treasury Source said: “The government keeps all of this under review. As part of that it would be irresponsible to not cover all bases when it comes to working with stakeholders like energy firms.”
Any change could be announced in the Budget on March 15th, with unexpected record high January tax receipts and reduced wholesale gas costs giving chancellor Jeremy Hunt more scope to help keep bills down.
This could be an opportunity for Mr Hunt to announce extra support that could work in conjunction with an easing of the prepayment meter rules, ensuring low-income households are not being cut off due to higher energy costs while satisfying energy suppliers that this will not leave them burdened by a load of unpaid bills.