Prepayment meter premium to be scrapped in July
Prepayment meter premium to be scrapped in July Mar 24, 2023
Under current rules, suppliers are able to forcibly install prepayment meters if they have obtained a court warrant to do so
An estimated 600,000 people were forced onto a prepayment meter due to not being able to afford their energy bills in 2022, meaning they would have to pay their bill in advance.
This left many people at risk of self-disconnecting, particularly due to the energy price cap rise and higher costs prepayment meter customers face.
As it stands, prepayment customers pay more to cover the administration costs of managing meters and supplying vouchers.
Chancellor Jeremy Hunt stated: "It is clearly unfair that those on prepayment meters pay more than others. We are going to put an end to that. From July, four million households won't pay more than those on direct debits."
As of July 01, prepayment meter customers will no longer pay a premium compared to direct debit customers.