This change, which comes into effect today, will benefit approximately three million households using prepayment meters across Great Britain, ensuring that their bills align with those who pay by direct debit. The government will cover the difference, eliminating the premium previously charged to prepayment meter customers.
Currently, pay-as-you-go meter households pay more on average due to the additional costs incurred by suppliers in servicing their homes, such as collecting payments or providing vouchers. By removing the prepayment meter premium, these households are estimated to save around £21 per year on their energy bills. This move aims to establish fairness within the system and provide extra support to consumers with lower incomes who predominantly use prepayment meters.
