Citizens Advice is calling for a “total ban” on forced prepayment meter installations until new protections are introduced, following its findings that one person on a prepayment meter is cut off every 10 seconds.
New research from the watchdog and charity, which is supported by more than 20,000 volunteers, found that 3.2m people ran out of credit on prepayment meters last year because they couldn’t afford to top up.
Further, Citizens Advice has found more than two million people are being disconnected at least once a month.
The body also found that one in five (19%) prepayment meter customers cut off in the past year then spent at least 24 hours without gas or electricity.
Concern for vulnerable people
Citizens Advice – the consumer watchdog for the energy market – says it is particularly concerned about disabled people and those living with long-term health conditions.
Nearly one in five (18%) households including someone in this group, who ran out of credit last year, went on to spend two days or more without energy supply.
The energy regulator, Ofgem, has rules that mean certain groups, such as disabled people and those with long-term health conditions, should not be forced onto a prepayment meter.
In October, Ofgem warned suppliers that not enough was being done to identify customers in vulnerable circumstances before installing a prepayment meter.
Citizens Advice’s latest research has found that, in the month following Ofgem’s intervention, more than a third of prepayment meter households including a disabled person, or someone with a long term health-condition, were cut off from their energy supply at least once – that’s more than 470,000 households.
In 2022, Citizens Advice said it saw more people unable to top up their prepayment meter than in the whole of the last 10 years combined.
Potential ban
As a result of its findings, Citizens Advice is now calling for a total ban on forced prepayment meter installations until new protections are introduced.
The charity says it has seen a 229% increase in the past year in the number of people coming for help who can’t afford to top up their prepayment meter.
Based on Ofgem figures, Citizens Advice estimates that 600,000 people were forced onto a prepayment meter because they couldn’t afford their energy bills in 2022.
Further, it predicts 160,000 more people could be moved onto a prepayment meter by the end of winter if no further action is taken.
‘If Ofgem doesn’t act, the government must intervene’
Dame Clare Moriarty, chief executive of Citizens Advice, said: “All too often the people finding it hardest to pay their bills are being forced onto a prepayment meter they can’t afford to top up.
“This puts them at real risk of being left in cold, damp, and dark homes.
“The staggering rise in the cost of living means many simply cannot afford to heat and power their homes to safe levels.
“New protections are needed to stop people being fully cut off from gas and electricity.
“Until then, there must be a total ban on energy companies forcing those already at breaking point onto prepayment meters.
“If Ofgem doesn’t act, the government must intervene.”
Image: Monkey Business Images/Shutterstock
Read next: Severe maladministration after resident suffered heating and hot water issues for years
Are you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.
