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British Gas Cut Prepayment Bills

British Gas Cut Prepayment Bills

Wednesday 24 June, 2008

By Dan Drage

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British Gas entered new territory this week by unveiling their first online tariff for prepayment customers.

The tariff, which aims to cut prepayment bills by £70 a year, is the first of its kind across the energy marketplace. Dubbed the ‘Click Pay As You Go Energy’ tariff, the product will be officially launched today on the British Gas (www.britishgas.co.uk) website.

A statement from British Gas claims the new tariff will reduce the average dual fuel prepayment bill from £1143 to £1073.

"Not all prepayment meter customers have access to the internet"

Prepayment meters are most widely used by low income households as a way of controlling their bills, as well as by students and those with holiday homes. If a customer has failed to settle their bill after a certain length of time, the energy company will often choose to fit a prepayment meter in their home.

The average household on a prepayment meter pays £137 more than those paying by direct debit, and more than £214 more than those paying online, according to Energywatch.

This move, although welcomed by price comparison sites and energy watchdogs, has been criticised by the National Housing Federation for not going far enough.

Chloe Hardy, head of campaigns at the National Housing Federation, had the following to say:

“This still leaves many of British Gas's poorest customers with staggeringly high bills. Not all prepayment meter customers have access to the internet.”

Chris Eagle, Commercial Manager at Energy Choices, views this as the first stage in an evolution:

“Prepayment meter customers have been hard done by for such a long period, it’s time the energy companies gave them a break”

He continues:

“Hopefully the remaining five of the big six suppliers will now follow suit and all offer a cheaper, online tariff to prepayment meter customers.”



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Comments

I had an outstanding bill with British Gas of around £800 and they asked me to have a prepayment meter. I have had it for nearly two years and have been paying £6 a week off the outstanding debt through the meter as well as putting in at least £40 a week for gas. I only have central heating that is gas. They have now said they didn't put the outstanding amount on the meter when it was installed and therefore I still owe them £840. The meter has taken £6 every week since I got it and it sometimes takes it twice a week. What can I do about this. the meter has nearly driven me mad, I am constantly putting money in it and now they say they didn't take the debt, I know for a fact they have because every time i put money in i takes it off, so if I put £10 in I only get £4 for gas. - Jan 16 2010 3:02PM
vanessa ions, Sutton on Hul, East Yorkshire

same as mrs hall we also put in £45 a week with 2 children of 2 months and 19 months old. my partner is on jobseekers and myself on maternity we are struggling to keep our children warm through these cold weeks. It is only our central heating we are using our gas for!!!! - Jan 6 2010 9:54PM
hayley guest, warwick

Hi there,

You can find a number of money saving tips here:

energychoices.co.uk/reduce-energy-bills-without-switching.html - Jan 5 2010 5:22PM
Hazel Cottrell, UK

i am on pre payment meters for both my gas and electricity,whilst i only place seven pound a week in my electric meter,i am placing about forty five in my gas meter,i dont have my heating on all that much ,do u have any money saving tips that could help,cos this is a lot of money - Jan 4 2010 6:38PM
WE HAVE RECENTLY BEEN FITTED WITH A PREPAYMENT METER FROM OUR LANDLORD, FOR OUR ELECTRICITY. THEY SEEM VERY EXPENSIVE, I THINK ITS A CONTROL THING, POOR HOUSEHOLDS DONT OFTEN HAVE VERY MUCH TO CONTRIBUTE TOWARDS SOCIETY, OFTEN NOT WORKING AND BEING A BURDEN UPON OUR INSTITUTIONS, BUT PEOPLE WHO DO CONTRIBUTE ARE OFTEN TOLD THAT THEY DONT CONTRIBUTE ENOUGH, THE VERY RICH HOWEVER SOMEHOW MANAGE TO PAY LESS FOR MOST THINGS. - Oct 14 2008 7:35PM
I am finding it increasingly difficult to find a near shop that does pre pay there are four shops within walking distance that use to do it but now there is only one. As someone on a low income is it advisable to change to a quarterly bill. I am in london and three of the shops are on shepherds bush road w6 - Sep 13 2008 2:19PM
i have a prepayment meter with british gas for both gas and electricity, can i have the price fixed on these before the big40% rise comes - Jul 15 2008 8:25AM
lorna crofts, UK