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The Guardian - UK
The Guardian - UK
Business
Nils Pratley

Has Ofgem grasped the scale of disconnection of people on prepayment energy meters?

Woman using prepayment meter
About 600,000 people were forced to switch from credit agreements to energy prepayment meters in 2022, according to Citizens Advice. Photograph: Libby Welch/Alamy

It should have been possible to spot the tension a mile off. A combination of rising bills and falling real incomes would inevitably create pressure at the point in the energy system where affordability is most acute – prepayment meters.

So it has proved. The statistics last week from Citizens Advice, the statutory consumer body in the energy market, were stark. About 3.2 million people last year ran out of credit on their prepayment meter at some point because they couldn’t afford to top up. In the energy industry’s awkward euphemism, they “self-disconnected”. For most, it was not a one-off: 2 million people are being temporarily disconnected more than once a month.

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