65% of customers on prepay meters concerned over rising energy costs

More energy use

Customers who do not have a smart prepay meter are concerned over their energy bills as their energy spending has increased due to the national lockdowns.

With many people either furloughed or working from home over the dark cold winter months, heating and electricity use have surged. Some employers have offered monetary support to their staff for the extra costs, but many others have received little to no help.

57% of the 1,000 people on non-smart prepayment meters surveyed in January stated that they are very worried over their rising energy bills since the beginning of the third lockdown.

Also read: Energy Price Cap predicted to rise £66 due to wholesale energy price recovery

Prepayment meter disadvantages

The survey also highlighted the other common complaints consumers have with prepayment meters.

Of those surveyed, 34% on non-smart prepayment meters said that leaving the house to top up was the most irritating thing about them and with the lockdown, a large number are concerned about the Covid-19 virus.

Other gripes were the worries over potentially losing the meter key and running out of energy at the worst times. With the winter in full swing and temperatures plummeting a loss of energy can be disastrous for people's health.

Also read: Prepayment Meter vs Direct Debit: Which is Better?

The benefits of Smart meters

Smart Energy UK is hoping that its survey will promote the benefits of smart meters to consumers currently on non-smart prepayment meters.

Energy suppliers could use the key stats from the survey to try and convince their customers to adopt a smart meter and help raise awareness of the smart meter rollout across the UK.

One of the major benefits for consumers over non-smart prepayment meters is that smart meters have a display which helps people understand their energy spending in "real time". Suppliers should also raise awareness that consumers can access certain energy tariffs which could work out cheaper.

"Increased energy bills can be a worry for anyone, but we know there is extra pressure on people with prepayment meters, who tend to be living in more vulnerable circumstances. Both prepay and credit smart meters offer the opportunity for people to take control of their energy use and start to understand the changes they could make in order to help them save energy and money at a time when more and more people are living with financial worries and difficulties," said Smart Energy GB's head of public affairs Fflur Lawton.

Also read: Covid-19's impact on smart meter installation revealed

What meter is right for your customer?

A regular customer with a consistent income looking for a great deal will almost always benefit from a direct debit tariff. The reduction in administration costs and the regularity of payments often means you'll be able to offer them a greater range and value of tariffs.

However, there are some commitments that you, the energy supply company, need to be sure you can make when placing a customer on this type of tariff. Letting the customer build up a large credit balance or a large debt is irresponsible, so it's important to seek meter readings and adjust direct debit amounts as early as possible.

Some consumers should never be placed on a prepayment meter, or at least not one which will disconnect in the event of credit running out. Vulnerable people, those with young children and those with health issues who rely on their energy supply to keep them well need to be protected.

Suppliers should also familiarise themselves with OFGEM guidance for the installation of prepayment meters. Much has been done of late regarding keeping prepayment customers safer. This includes restrictions on the amount they can be charged, measures to avoid self-disconnection and self-rationing, as well as changes to warrant uses and charges.

Also read: What are the advantages of smart meters? 

Further Reading

Green Network Energy and Simplicity Energy cease trading, Symbio Energy to be fined £100,000 for late Renewables payments

Number of Consumers switching Energy Supplier fell 6.5% in 2020

Ofgem wants a new independent body to lead the way to Net Zero

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