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Extra costs for those on prepayment meters to be scrapped
The Chancellor is expected to end the “prepayment premium” under reforms to be announced in the budget on Wednesday (15 March).
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
This will mean prepayment meter customers will no longer be charged more than their counterparts on direct debit meters from July, saving more than four million households £45 a year on their energy bills.
Households on these meters currently on average pay more than direct debit customers because of firms managing the meters passing on costs to users. These customers are also typically on a lower income.
Chancellor Jeremy Hunt said: “It is clearly unfair that those on prepayment meters pay more than others. We are going to put an end to that.
He added: “From July four million households won’t pay more than those on direct debits. We’ve already cut energy bills by almost half this winter, and this latest reform is proof again that we’re always on the side of families.”
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