Energy News

Ofgem’s switching drive

Monday 09 July, 2007

Prepayment meter customers have been urged to switch supplier and move to direct debit as part of a campaign by Ofgem.

The Office for the Gas and Electricity Markets said that switching away from the expensive meters could save each customer an average of £100 - rising to £170 in some areas - and a national saving of around £250 million.

PPMs are favoured by low-income households because they make budgeting easier, but the dated tariffs are often expensive, and customers remain unaware of the new deals available to them.

As part of their upcoming Consumer First campaign, Ofgem is aiming to advise PPM customers about the savings they can make, even if they’re not in a position to move onto direct debit.

Alistair Buchanan, Ofgem chief executive, said: “Customers should consider whether they would not be better off paying for their energy in another way, but if they prefer budgeting with prepayment meters then they also need to look closely at the many special deals suppliers are offering PPM users.”

Even switching to a PPM with another supplier could bring savings for customers. Ofgem also advised that unlike other customers, PPM users are better off taking their gas and electricity from separate suppliers.

Chris Eagle, EnergyChoices.co.uk commercial manager, said: “Many people are tied to prepayment meters because they need to budget carefully, but they end up having to pay far more than other customers simply because they are on low-incomes.

“It’s really good to see Ofgem finally addressing this issue and educating PPM users on the many ways they can save.”

Compare gas and electricity prices and see how much money you can save.
Compare energy prices