The price comparison website Uswitch said the startling trend – after more than two years when the number of meters has been falling as more homes moved to direct debit – was a worrying sign, as customers could disconnect when usage and bills were likely to be highest at the coldest time of the year.
“The rise of prepayment meter numbers is a worrying reversal of a trend after nine consecutive quarters falling, suggesting households are becoming increasingly at risk this winter,” said Richard Neudegg, director of regulation at Uswitch. “Families and individuals on prepayment meters will be plunged into darkness as they self-disconnect when they can’t afford to top up.”
The vast majority of suppliers put struggling customers on prepayment meters rather than disconnecting them. However, many of those customers then effectively disconnect themselves by not topping up the meter. Prepayment meters also cost the average household about £50 more a year in standing charges compared with an equivalent direct debit customer.
Read more at The Guardian
