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“What can be done now to help prepay customers?”
Prepay customers are getting a second class service from energy firms compared with those on other payment methods. Citizens Advice is calling on suppliers to sign up to its Consumer Demand.
Prepay customers have few ways to top up and a limited choice of tariffs, they must pay to have unreachable meters moved and an extra £80 on their bills.
The industry says smart meters will cure all the inherent problems with prepay. But what can be done now?
As it stands, many suppliers have only one pay-as-you-go tariff resulting in a lack of options for consumers. Suppliers could give customers more choice by offering at least two attractive pay-as-you-go tariffs which could also help increase competition in this area of the market.
There is a desperate need for energy firms to bring their pay-as-you-go systems into the 21st century. Being able to top up online, over the phone or by text would make a big difference to how people manage their bills. Auto-crediting meters with rebates such as the Warm Home Discount and the £12 government rebate would also help struggling households.
The rollout of smart meters is an opportunity for suppliers to tackle the stigma of prepayment meters, and make pay-as-you-go energy an attractive option for all consumers. There is already some good work being done by the industry to innovate and help customers, but a greater effort is needed to create a level playing field for prepay customers.
Gillian Guy, chief executive, Citizens Advice
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