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Daily Record
Daily Record
Politics
Chris McCall

SNP MSP urges energy suppliers to halt installation of prepayment meters

An SNP MSP has branded prepayment meters "a poverty premium" and called on energy companies to stop installing them in households already struggling with the cost of living crisis.

Graeme Dey warned the devices were pushing up the bills were pushing up the bills of thousands of Scots on the lowest incomes.

The meters require customers - often the poorest in society - to pay for their energy by regularly topping up their account online or from credit bought in convenience stores.

The typical domestic energy bill for 4.5 million prepayment meter customers across the UK will go up by £708 a year to a total of £2,017 this month - with fears that many will simply be unable to pay.

Dey is urging the UK Government to do more to support families that are struggling the most to pay bills at a time of soaring inflation.

The MSP for Angus South said: "Pre-payment meters are nothing more than a poverty premium, making bills for thousands of people across Scotland on the lowest incomes more expensive than they could be.

"Many will see their power bills sky-rocket further when the price cap increases in April.

“The Chancellor must introduce tangible measures that will cut costs for people on pre-payment meters who are paying a poverty premium for energy bills.

“Energy companies too should not install any further meters, placing even further families into fuel poverty. They should work with families to find a solution that works for households and keeps their bills as low as possible.

“The Chancellor’s Spring Statement was incredibly disappointing, and it is time he stepped up and made real commitments that will make a difference to families across Scotland – such as turning his cruel £200 loan into a grant.

“The Scottish Government has already taken action to ease the burden of the soaring cost of living but does so with one hand tied behind its back."

Ofgem - which regulates the UK energy market - has previously blasted suppliers for too often installing prepayment meters by force as a way of recovering debt.

Energy giant Utilita warned in February that a rising number of customers with prepayment meters were already being forced to go without gas and electricity.

Chief executive Bill Bullen said twice the usual number of pay-as-you-go customers were "self-disconnecting" when accounts ran dry.

He told the BBC that typically around two or three per cent of customers would "self-disconnect" after running out of money but that now stands between five and seven per cent.

A UK Government spokesperson said: “We understand that people are struggling with the rising cost of living – we can’t shield everyone from the global challenges we face but we’re putting billions of pounds back into the pockets of hard-working families across the UK."

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