Pre-payment customers losing out on ?769.61 million energy savings

Average pre-payment tariff is ?150 more expensive for gas and electricity than the best value rate British Gas to launch first online tariff for pre-payment meter customers

Brits on pre-payment meters are paying over the odds for their gas and electricity, with some vulnerable people disconnecting their meter because they can not afford to top it up.

Research from price comparison site moneysupermarket.com finds on average, a pre-payment customer on a standard tariff will pay ?1048 a year for their gas and electricity, ?153 more expensive than the 'best' average tariff available from the energy giants.

With five million customers on pre-paid meters, the people most in need of a helping hand are missing out on ?769.6 million a year in savings.

British Gas will launch its first online tariff for pre-payment meter customers tomorrow - Click Pay As You Go Energy - at ?1,073 - ?70 cheaper than its standard deal.

However, this is still more expensive than the average cost of a standard customer paying by quarterly cash or cheque.

Scott Byrom, utilities manager at moneysupermarket.com, said: "Rising energy costs have caused 14 per cent of gas customers and nine per cent of electricity customers on pre-payment meters to 'self-disconnect' and go without heating and power because they cannot afford to pay for their energy.

"Pre-payment customers should not be punished for using this type of meter.

It is painfully ironic that they pay a hefty price and are charged 17 per cent more on average than those who pay by monthly direct debit.

In the Budget this year the Government put forward proposals to treat pre-payment customers fairly.

It is high time these promises are put into action.

Energy providers should look to reduce prices for pre-payment customers, remove back charges completely and pledge to shield them from further anticipated price hikes this year.

"Following the price hikes this year, an estimated half a million more households have plunged into fuel poverty and without action from energy providers and the Government, it is likely that more could slip into this situation.

For vulnerable customers who are struggling to pay for their energy bills I advise them to speak to their supplier who may be able to offer special social tariffs or give information on swapping to a credit meter, or advice on other discounts.".

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