‘Almost half a million could be forced onto prepayment meters by end of year’

Prepayment customers could spend £258 more on their energy this winter than someone paying by direct debit, according to a new report

Big Zero Report 2022

Energy debt could force nearly 450,000 customers onto prepayment meters this winter.

That’s according to new analysis by Citizens Advice which suggests that households that pay-as-they-go could spend £258 more on the energy they use compared to customers making direct debit payments.

The charity analysed Ofgem data on the number of customers moved to prepayment meters due to their existing debt to make its predictions for this year.

Under current rules, energy providers can push someone onto a prepayment meter when they can’t pay their bills.

The report estimates that the number of people coming to the charity because they have been forced onto a prepayment meter has jumped by 138% in the last two years.

With four million households expected to be on prepayment meters this winter, collectively these customers will spend more than £1 billion on energy compared to direct debit customers.

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