Citizens Advice (CA) published a report Kept in the dark – the urgent need for action on prepayment meters[i]  in January 2023. The report found that

• More than 2 million people are being disconnected from their energy
  supply at least once a month.
• 1 in 5 (19%) prepayment customers who had been disconnected from their
  energy supply in the past year said they had disconnected for more than 24 hours at least once.
• 1 in 3 (33%) people on prepayment meters said that they had disconnected at least once in the past year because they could not afford to top up. This equates to more than 3 million people, or 1 person every 10 seconds.

Prepayment meters were intended to help people manage their energy costs. CA says instead ‘Prepayment meters simply pass off the responsibility for disconnection from energy suppliers to consumers – the impact is the same. The cost of continuing to do nothing is condemning many low income households to sit in cold and dark homes, with severe consequences’ The report also highlights ‘that 600,000 people were forced onto a prepayment meter for debt in 2022, compared to 380,000 in 2021. And we predict that more than 160,000 more people could be moved onto a prepayment meter by the end of this winter if no further action is taken’

Councillor Chadderton said ‘This is a shocking situation for many Oldham households. I have written to the Chair and Chief Executive of Ofgem asking it to take urgent action to reform the use of prepayment meters. I support Citizens Advice’s calls for a total ban on the forced installation of new prepayment meters until additional safeguards are put in place to end self-disconnection and a review of all users of prepayment meters, with a commitment to replace them with credit meters where this is necessary to remove the risk of disconnection. I note Ofgem’s Chief Executive has announced a further review despite Citizens Advice already identifying where action needs to be taken. I urge Ofgem to act now’

She added ‘Warm Homes Oldham[ii] can help with heating your home and Oldham Labour’s We can help programme has invested more money to support Oldham residents. But Ofgem also needs to step in to stop energy suppliers moving people in vulnerable circumstances onto prepayment meters, in breach of energy supplier regulations, as seen by Citizens Advice frontline advisers. Please don’t sit in the cold and dark – use one of the warm spaces open across Oldham and talk to Citizens Advice about what help you can get.’