Millions of households on energy prepayment meters are set to see their bills drop. The controversial extra costs on pay-as-you-go meters are set to be scrapped from July 2023. The move will means that more than four million households across the UK will save around £45 a year on their energy costs.
Chancellor Jeremy Hunt has confirmed that the "pre-payment premium" will be coming to an end. It is news that will be welcomed by those using the meters, typically vulnerable or low income households, who are, on average, currently pay more than direct debit customers due to firms managing the meters passing costs down.
The change is expected to come into effect from July 1, with the Chancellor set to announce the plans in his Spring Budget as part of reforms to the Government's Energy Price Guarantee. The forced installation of prepayment meters is also due to come to an end on Friday, March 31, after Ofgem asked all suppliers to pause installations in a bid to protect vulnerable customers.
