A new report released today by Citizens Advice has shown that energy users on a prepayment meter are paying far more than what they should, with the average prepayment customer paying £266 more than they should than if they were upon the cheapest fixed price tariff.
Around 5.9 million UK homes who have a prepayment meter in their homes are more likely to be on a low income, and 80% of those getting them installed are already in debt. Ofgem are currently looking into changing regulations in regards to prepayment meters.
How do Prepayment Meters Work?
Users pay for their electricity or gas in advance, by topping up cards or buying tokens at recognized Pay point or Pay zone points across the UK. Users may also top up their accounts online via text or their energy suppliers app.
Can I switch if I am on a prepayment Tariff?
If you are one of these customers you can still switch to a standard meter, however your supplier may charge to remove your prepayment meter and they may require you to meet certain criteria such as being debt free for a length of time prior to switching. You can also switch suppliers if you are on a prepayment tariff with the average saving expected to be around £188 just simply compare your energy details with us and see how much you should be saving.