Energy: Meters
Question
Imran Hussain
To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to end the higher standing charges paid by prepayment meter users; and if she will make an assessment of the impact of that inequality on low-income families in Bradford East.
Answer
Martin McCluskeySince 1 April 2024, under the price cap, Ofgem has levelised standing charges for prepayment meter and direct debit customers and implemented a process of cost reconciliation for suppliers. This reduces the standing charges of consumers with prepayment meters, while each direct debit consumer pays more than they would have otherwise done.
This ends the inequity of people with prepayment meters, many of whom are vulnerable, being charged more up-front for their energy than other consumers. The Government knows too much of the burden of the energy bill is placed on standing charges. We are working with Ofgem to address this.