OVER four million households on prepayment meters will see their bills rise to £3,608.
Energy regulator, Ofgem, confirmed the new price cap, earlier this morning.
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From October the first, those on prepayment meters will see their bills rise by £1,591 – a 79% increase on the current prepayment cap.
The new prepayment price cap will increase from £2,017 to £3,608.
Prepayment meter customers will end up paying £59 more a year than those who pay their energy bills by direct debit.
And if the new cap is compared to the level it was at in October 2021, bills for millions have increased by 212% – from £1,156 to £3,608.
The announcement of the new price cap comes in the same week that an estimated 300,000 households on prepayment meters face having debts deducted when they top up this winter.
Shell Energy also announced yesterday that thousands of its prepayment customers are due refunds after being overcharged.
Simon Francis of the End Fuel Poverty Coalition, said: “Today’s Ofgem price hike to £3,549 is like a dagger to the hearts of millions of people up and down the country.
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“And for 4.5m pre-payment meter customers, who are often already in fuel poverty, the rise will be even more punishing.
“We need emergency financial support, especially for the most in need and those on pre-payment meters.”
Prepayment meters provide a pay-as-you-go service, and 4.3million top up using a key, card or app and pay for the energy they use in real-time.
There’s two types of prepayment meters:
- Traditional or “legacy” prepayment meters – you’ll need to top these up using a card or key fob which you can add cash to at local PayPoint kiosks.
- Smart prepayment meters – which you can top-up at home over an app or online.
You only pay for the energy you have budgeted for but it is important to keep the meter topped up so you don’t lose power in the middle of a wash or during the finale of your favourite series.
However, using a pre-payment meter can be more expensive than a standard meter.
They are often installed in homes that have fallen into debt so customers can manage their bills better or by landlords in some rental properties.
What energy support is available this winter?
All four and a half million prepayment meter customers are eligible for a £400 energy bills discount this winter.
The discount will be paid in six instalments from October. Two worth £66 and four worth £67.
Those on smart prepayment meters won’t need to do anything and the discount will be automatically credited to your meter each month.
However, those on older traditional prepayment meters won’t be able to receive the discount directly.
These customers will need to collect and redeem a discount voucher to take advantage of the £400 energy discount.
Make sure your details, including your home address are up to date, so that your energy supplier doesn’t send the vouchers to an old address.
You should receive clearer instructions on how to use and redeem the full value of these vouchers once you get them in the post of via text.
You’ll likely be able to take them to where you usually top up your meter and the cashier will be able to add the credits onto your card or key fob.
There are plenty of energy grants and schemes open to help you out if you’re struggling. Ask your supplier what’s on offer and how to apply, or check here:
Those on prepayment meters may also be able to get a one-off fuel voucher.
Thousands of households on benefits will also be eligible for the £150 Warm Home Discount.
Anyone getting the state pension will also get winter fuel payments worth £100s. These are a tax-free payment that comes from the government each year and is worth between £100 and £300.
