York campaigners relief after "prepayment meter penalty" scrapped
The Government have confirmed the change will come in this Summer
Campaigners are welcoming the Government's decision to make sure people or pre payment metres aren't paying more for their energy.
The "prepayment meter penalty" will end in July, saving more than four million households around £45 a year at a cost of £200m.
It will be managed through changes to the government's energy price guarantee and, after this ends in April 2024, energy regulator Ofgem will be asked for ways the change can be made permanent.
Lynn Turner lives in York and had set up a petition calling for the change: " I just thought that is was unfair that people who were on prepayment meters were paying more for their gas and electric and paying for it before they used it. It is good news they are changing the rules but I still feel they just haven't been doing enough to help people who are struggling."
York Central MP Rachael Maskell had also been lobbying for the change, she says:
“This winter, I led the way in calling for an end to the pre-payment scandal where the poorest households have been paying the most for their energy. I am glad that the government has finally listened, and will outlaw this terrible practice, but the delay in this decision has caused misery for 4-million families, who have been left to suffer this winter, and compensation to them should now follow.”
Energy suppliers have said prepayment meters cost more to manage - supplying vouchers and collecting payments, for example - blaming this for the higher prices.
But most of the households on prepayment meters are vulnerable or low income, meaning the higher tariff and inability to spread the cost across the year are hitting those who can least afford to pay.