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Chronicle Live
Business
Catherine Furze

Concern grows for vulnerable families with a prepayment meter as energy price cap hits

While most households are preparing to face a difficult winter, it will be the 4.5 million families who pay for their energy using a pre-payment meter who could suffer the most.

Families using prepayment meters - where they pay for their energy before they use it by topping up with either a key, card or online - already pay more than credit customers and many of them are on low incomes. And some experts reckon we will see more of these meters installed when the cold weather arrives and more people are struggling to pay their bills, because those who cannot pay are often switched to prepayment meters.

Energy companies can claw back debt using a prepayment - or pay-as-you-go meter, as the meter can take back a small amount towards the debt every time the customer tops up.

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