12 Jan Affordable energy: Citizens Advice calls for ban on energy companies forcing customers to prepayment meters
Citizens Advice estimate that 3.2 million people across Britain ran out of credit on their prepayment meter last year, the equivalent of one every 10 seconds. This means that families and households who fall into low affordability categories and were forced onto prepayment meters are left in the cold and dark as they cannot afford to top-up their meters regularly. As a result, the charity is calling for a ban on the practice and pleads with energy suppliers to stop going into the homes of thousands of households to fit prepayment meters, until more protection is put in place. This comes as the government newly announces support for those who fall into vulnerable housing communities where millions will receive the new £900 cash boost for those eligible on means-tested benefits claimants, including those on Universal Credit, Pension Credit and tax credits. Mark Sait, CEO & founder of the leading sustainability and money-saving consultancy platform, SaveMoneyCutCarbon, comments on the affordability of energy and offers an overview of the government support currently available for those struggling.
“It has now become evident that the prepayment meters are not a viable option for those who fall into the low affordability category as families and people in vulnerable communities simply cannot afford to top up their meters. The public is continually at the mercy of new announcements and government support which can be confusing. However, the latest announcement that those on means-tested benefits can claim the new cost of living support from Spring 2023 does provide short-term relief for those unable to afford basic domestic house bills. However, the continued focus on supporting incomes rather than longer-term reductions in dependence on fossil fuels is something that needs to change. While support is beneficial, improving home energy efficiency and supporting low-income households both need urgent attention.
“What needs to happen is finding a way to be smarter with energy use. This can start with the least cost-effective way – behaviour. I.e., not just turning your heating off but checking when your timer is set and switching off appliances/boilers that aren’t in use. Alternatively, it can be low-cost, sustainable swaps. The most obvious is a swap to the LED lightbulb – you will be using fewer energy units and it will be a big saving. Small changes make a big difference. Not everyone can afford big solar panels, electric cars and so on, so education, behaviour change, community and coming together will make the biggest difference. There’s always more to be done on our end – people just need the facts to know where to begin.”
A household using a typical amount of gas and electricity will pay £3,000 annually, up from £2,500, as the Energy Price Guarantee rises. The scheme will run for 12 months from April. It is estimated that without further government intervention, a typical annual energy bill could be £3,702 from April, according to analysts Cornwall Insight, plunging a predicted two-thirds of families into energy debt.
A landmark study from SaveMoneyCutCarbon found that energy efficiency is already high on the list of British homeowner’s priorities. These findings are indicative of greener behaviours being engrained as a more conscious decision for UK consumers aided by plans outlined today:
51% agree that they want to swap all traditional light bulbs in their house for LED by the end of the year in order to reduce their energy bill
48% agree that energy efficiency is the first thing they look for when purchasing a new item for their home
45% agree the next house they buy will be energy efficient
12% agree that they have installed an electric charging point at their home ahead of purchasing an EV
