Pre-payment energy bills nearly £390m overpaid

Pre-payment energy bills nearly £390m overpaid: Energy customers using pre-payment are overpaying energy bills by nearly £390 million a year.

comparethemarket.com finds in new research recently published, which reveals that of the 4.1 million pre-payment customers, each are paying on average £94 more a year for their energy than they would pay on a standard credit meter.

Much like standard energy deals, prepayment tariffs can be either fixed or variable – the newly-published research finds the cost differences are significant between tariff types, especially for those on lower incomes, with the 64% of prepayment customers on a standard variable tariff paying an average annual cost £1,195, £39 more than a non-prepayment meter standard variable tariff.

Similarly, compared to a non-prepayment meter fixed tariff, a fixed-term prepayment meter tariff is on average £33 more expensive a year.

The annual difference in price between the average customer with a standard credit meter on a fixed term tariff versus a prepayment customer on a standard variable tariff is £219 per year, rising to £431 per year compared against the cheapest fixed credit meter tariff on the market.

The research highlights there are currently just four fixed prepayment meter tariffs for customers to switch to, but 283 tariffs available for non-prepayment customers and only 45 variable prepayment tariffs available compared to 91 for customer on a credit-based standard variable tariff.

Head of Energy at comparethemarket.com, Peter Earl said: “It is hugely concerning that prepayment meter customers – some of whom are undoubtedly classed as vulnerable – are paying considerably more for their energy on average than those on a standard credit meter.

“According to the latest government fuel poverty statistics over two million households are living in fuel poverty. British Gas’ swift reversal of its decision to only allow top-up of its prepayment meters by a minimum of £5 earlier in the year underlines how far consumers struggling to make ends meet must make each pound go.”

Pre-payment energy bills nearly £390m overpaid

, , , , , , , , , , ,
Previous Post
Nottingham’s carbon-neutral plan shaped by residents
Next Post
The effects of lockdown on the Balancing Mechanism

Related Posts

Gas generation feels the squeeze from renewable tech

Gas generation feels the squeeze from renewable tech: Cornwall Insight Australia has examined the revenues in Victoria for coal replacement technologies and the impact the transition is having on the captured value for these technologies. Our research shows that gas power generation (GPG) revenues are being displaced by wind and solar. In Q120, solar revenue…
Read More

‘UK’s greenest’ tyre recycling plant comes to Sutherland

What is claimed to be the ‘UK’s greenest’ tyre recycling plant will soon be making its home in The Port of Sutherland. The project will be developed by the Scandinavian recycling startup Wastefront and will use a technology which converts end-of-life tyres into products such as liquid hydrocarbons and carbon black – these can be…
Read More
Menu

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.