Right now, the most vulnerable people in our society pay more for their gas and electricity than everyone else. Read that again - the most vulnerable (low wage or no wage) pay more for their energy than everyone else. 

The massive rise in energy prices we are witnessing now will impact these people more than everyone else. Why? Because the cost per unit for those on prepayment meters is higher than for those who pay their bills by direct debit or quarterly. 

What's more, they pay a daily standing charge to the energy companies, even when they aren't using any energy. 

WHAT'S THE PROBLEM?

Paying prepayment tariffs makes it harder to pay off debt and leaves less money for other essentials, including food and other bills. Many people facing the ‘heat or eat’ dilemma are forced to turn to food banks or payday loans to cover their costs.

Fuel-poor households spend a much greater proportion of their income on fuel, with some paying up to 30%, compared to non-fuel-poor households that pay as little as 3%.

WHO USES PREPAYMENT METERS?

The vast majority of people who have prepayment meters are those who struggle to pay their bills from month to month, or who have previously been in arrears for energy. To speak plainly, they are the poorest people in our society and include young working families, the elderly and key workers. In many cases, energy companies install the meters in the homes of customers who have struggled to pay. People are being trapped on these meters meters. Customers who have more than £500 of debt (on their gas or electric meter) or a bad credit history are blocked from switching to a cheaper supplier or tariff. Many private landlords also install prepayment meters, forcing tenants to pay more for their energy. 

THE MOST VULNERABLE ARE BEING PENALISED

Think about this for a second. When you have a prepayment meter, you pay upfront and pay more for your gas and electricity. Everyone else effectively gets interest free credit and pays less. This is grossly unfair and has to change. 

The energy companies justify this by saying that there is more administration involved in serving those with prepayment meters. But many 'topups' are purchased by mobile phone these days. 

IT'S TIME TO LEVEL THE PLAYING FIELD AND MAKE EVERYONE PAY THE SAME FOR THEIR GAS AND ELECTRICITY!