Big Win for Prepayment Meter Users as Premium Charges Are Axed Today!
Three Million Households Set for Savings
From today, around three million households across Great Britain with prepayment meters will no longer pay the dreaded extra fees. The government steps in to cover the gap, making sure these customers pay the same as those on direct debit.
Cutting the Cost: Prepayment Premium Removed
Prepayment meter users have long been slugged with higher bills – around £21 more a year – because suppliers face extra costs collecting payments and issuing vouchers. Now, with the prepayment premium scrapped, those savings go straight into pockets, giving low-income families a fairer deal.
Energy Bills Drop Thanks to Ofgem’s Price Cap
This move coincides with Ofgem’s latest price cap update. Wholesale market improvements have slashed typical annual energy bills from a whopping £2,500 under the Energy Price Guarantee to about £2,074. That’s £426 – or 17% – off each bill, easing inflation and ticking a key promise from the Prime Minister.
Government and Regulators Clamp Down on Unfair Practices
Amanda Solloway, Energy Consumers and Affordability Minister, slammed the “historic injustice” of charging more to prepayment meter households, many on low incomes. The government will fund the premium removal until April 2024, after which Ofgem will make the ban permanent.
Earlier this year, Energy Security Secretary Grant Shapps ordered Ofgem and energy firms to crack down on wrongful installations of prepayment meters in vulnerable homes. The government wants these meters as a last resort only and is closely watching compliance through a strict Code of Practice.
Massive Government Energy Support in Action
- Nearly £40 billion spent between October 2022 and March 2023 to keep energy affordable – a UK record.
- Almost half of household bills covered during winter, saving families nearly £1,500 by June.
- £650 million pumped into prepayment households via the Energy Bills Support Scheme.
- Vouchers worth £400 over six months, with 85% already claimed by May, expected to rise.
