Concern over rise in households being switched onto prepayment meters

Campaigners have sounded the alarm about an increase in households switching to prepaid energy meters.

Prepayment plans mean that customers are required by their supplier to top up their accounts themselves, putting them at risk of blackouts if their balances run low.

The system benefits energy companies because it eliminates the risk of households taking on large debts that cannot be repaid.

But charities and trade associations worry that suppliers are abusing their powers by remotely allowing customers with smart meters to switch without permission.

Some 450,000 households could be switched this winter, the charity Citizens Advice estimates. It is expected that about 180,000 of these will run via a smart meter.

Adam Scorer, chief executive of campaign organization National Energy Action, says: ‘Ofgem should come out as a bloc as suppliers move away from households to prepayment plans. This should be an absolute last resort.”

South East London Community Energy campaigner Giovanna Speciale says: ‘If your supplier asks you to do this, make it very clear that you do not agree.’

It comes as the government admitted that millions of households with prepayment meters could wait this winter for their energy rebates.

Each household is entitled to a £400 rebate, with payments spread over £67 rebates over six months.

The amount is automatically applied to bills, except those on traditional prepayment meters.

These households must redeem the vouchers at their usual top-up point, such as a post office.

h.kelly@dailymail.co.uk