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Liverpool Echo
Liverpool Echo
Business
Jacob Rawley & Kate Lally

Smart meter warning as people 'forced' to switch to prepayment

Citizens Advice is calling for a ban as people are being "forced" to switch to prepayment meters they "can't afford to top up".

The consumer watchdog has found 3.2 million people in Britain on a prepayment meter were cut off in 2022, the equivalent of one every 10 seconds, the Daily Record reports.

Citizens advice said new protections would ensure that households can no longer be fully cut off from gas and electricity. This may be of particular importance to those who have a smart meter as they can be switched to a prepayment mode remotely and without permission.

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Ofgem data from November 2022 showed that around 60,000 UK households had their meters remotely switched to prepayment mode in the three months prior. In many instances, this will be voluntary, as people will opt to be switched to prepay to stop them from accruing debt with their supplier.

However, Citizens Advice estimates that 600,000 people were forced onto a more expensive prepayment meter in 2022.

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."

She added that if Ofgem doesn't act, the Government must intervene as those that are being moved to prepayment meters are already at "breaking point".

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