PPM self-disconnections rise by 650% since crisis began

The number of customers self-disconnecting from their prepayment meter (PPM) has risen by more than 650% since the start of the energy crisis.

In total, there were almost 22,000 cases of prepayment meter (PPM) customers reporting they had self-disconnected from their energy supply last year, Citizens Advice figures show.

That represents a 42% year-on-year increase and is 657% higher compared to 2021 when just over 2,900 self-disconnections were reported.

Source: Citizens Advice

PPMs were a major source of contention throughout 2023 following reports the devices were forcefully installed at the homes of vulnerable British Gas customers. Consequently, the practice of forced installs has been paused pending an Ofgem review into the matter.

Despite the lack of new PPMs being forcefully installed, the number of self-disconnections has continued to rise.

With more than 3,500 cases reported, December was the worst month in 2023 for self-disconnections. It was followed by January which saw almost 2,800 cases reported.

The figures are even more startling when compared to just over a decade ago. In 2012 just 50 cases of self-disconnection were recorded, meaning there has been an increase of almost 44,000% in 11 years.

Responding to the figures Peter Smith, National Energy Action’s (NEA) director of policy and advocacy, believes that record energy debt is going to continue being an issue for consumers well into 2024.

He told Utility Week: “Sadly the scale of people seeking help at the moment for unaffordable energy bills is shocking but we have known from day one that prepayment meter customers would be hardest hit by the worst and ongoing impacts of the energy crisis.

“It’s obviously an issue that isn’t going away following the average 5% increase to those already unaffordable bills at the start of this year. Those increases are happening at the worst possible time for households given how much they are already struggling and millions are obviously in record levels of energy debt and sadly we think that that is a trend that is likely to continue well into the new year and beyond.”

Smith said that with the upcoming Spring Budget and general election, NEA wants to see all three of the main political parties back measures such as the introduction of an energy social tariff, for central government to support efforts to reduce “toxic debt” that is impacting both consumers and suppliers and go further in terms of investing in energy efficiency.

Also commenting on the Citizens Advice figures was PPM specialist supplier Utilita. A spokesperson for the retailer said it had supported its customers on more than 3 million occasions since the start of the energy crisis.

They told Utility Week: “We have seen a rise in customers struggling to afford the energy they need, primarily because of the cost-of-living crisis. This has been displayed across all payment types: prepayment, direct debit and the most expensive method, pay on receipt of bill.

“Among prepay specifically this has been evidenced by an increase in self-disconnections. However, our smart data shows the majority remain short in duration.

“This indicates customers are waiting until their credit has run down before topping up – understandably so, given the cost-of-living crisis has left many households with little or no cash in reserve.

“It is also worth making the point that Utilita’s latest app features and innovations – including self-serve financial assistance tool, Power Up – have kept customers on supply on more than three million occasions since the start of the crisis.”