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(Bloomberg) — The use of prepayment energy meters is on the rise in Britain, causing concern that the poorest households may not be able to heat their homes this winter.
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The number of pay-as-you-go installations rose by 60,000 in the six months through March after previously dropping for nine quarters in a row, according to comparison site Uswitch.com. That means more consumers will rely on topping up power and gas accounts themselves instead of a paying via direct debit.
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Energy suppliers can move households who fall behind in their payments onto the meters with the intention of preventing bill-payers from falling deeper into debt. However, this is stoking fears that vulnerable households will be effectively disconnected from using energy if they cannot afford to pay via their meter.
“With energy prices set to rise again in April, this is a warning of things to come and we will most likely see more and more households moved to prepayment meters in the coming months and years,” said Richard Neudegg, director of regulation at Uswitch.com. “Families and individuals on pre-payment meters will be plunged into darkness as they self-disconnect when they can’t afford to top up.”