Prepayment meter announcement is a big win, but we need action on standard credit sooner
Today Ofgem, the energy regulator, announced a lasting solution to eliminate the extra costs for paying for energy using a prepayment meter. This announcement is a big win and follows years of campaigning for this poverty premium to be eliminated.
Ofgem also said it had not made a final decision on the extra costs for people who pay for energy when they receive their bill. It plans to continue to explore how to tackle this issue and will publish a consultation by the end of the year. If implemented, a reduction or end to this extra cost would happen from April 2025.
Maria Booker, Head of Policy, Fair By Design, said:
“This is a big win for people on low incomes. Today’s announcement introduces a lasting solution. We welcome recognition from the regulator that people on low incomes should not pay more for their energy.
“We also welcome Ofgem’s intention to bring down the premium for paying on receipt of bill, even if not as soon as we had hoped.
“But the extra cost for those who pay when they receive their bill still exists. We want to see this completely eliminated and will continue to push hard for this change to happen.”
