29 September 2008
Consumers facing soaring gas and electricity bills should turn to prepayment meters only as a last resort, according to uSwitch.com. The independent price comparison and switching service claims that at least 4.9 million customers could be paying over the odds for their energy by using prepayment meters. It claims prepayment meters cost households around £244 a year more than some of the cheapest online gas and electricity plans. Citing research by industry regulator Ofgem which shows that some consumers are using prepayment meters to help them budget, uSwitch.com claims this is a worrying trend. According to Consumer Policy Director Ann Robinson, prepayment meters should carry a "financial health warning". "I would urge consumers who believe that having a prepayment meter installed could help them cope better with rising energy prices to think and think again," she remarked. The government's new watchdog Consumer Focus has said that gas and electricity suppliers should be made to compensate customers on prepayment meters for the years they have been "ripped off".
© 2008 Adfero Ltd
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