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Prepayment Meter Crisis: One in six customers have avoided using energy for at least two days because they can't afford to top up

  • A fifth (21%) of energy prepayment meter customers have skipped hot meals because they can’t afford to top up, over a third (35%) have sat in a coat and hat indoors to fend off the cold and a fifth (19%) have sat in the dark[1]

  • A sixth (15%) of prepayment customers have avoided using energy for two days or more because of the affordability squeeze — up by a third compared to this time last year[1] 

  • Prepayment customers say a tenner’s worth of energy now lasts less than 4.5 days on average, down from nearly six days this time last year[2]

  • 4.5 million energy customers use prepayment meters[3], which cost £56.40 more a year on average than a standard credit meter[4]

  • Uswitch.com urges people who want to move off a prepayment meter to talk to their supplier about whether it may be an option for them 

A sixth (15%) of prepayment meter customers have avoided using energy for two days or more this winter because they cannot afford to top up — up by a third (36%) compared to this time last year[1], according to Uswitch.com, the comparison and switching service.

Around 4.5 million energy customers use prepayment meters for their energy[3], paying £97.40 a month on average[4]. Prepayment energy prices tend to be higher, owing to the extra cost of running the infrastructure, meaning prepayment customers typically pay more for their energy than those on a fixed deal with a standard meter, who pay £92.70 a month on average. People on prepayment meters currently pay £56.40 more than those on fixed tariffs over the course of a year[4].

The new findings from Uswitch suggest that the increase in the cost of living is already having an impact, with many prepayment meter customers already struggling with their energy bills, even before the energy price cap rises in April by £708 from £1,309 to £2,017.

Prepayment meter customers say that topping up their meter with £10 a year ago would buy enough energy to last an average of 5.8 days. £10 now lasts just 4.4 days, meaning people now need to top up seven times a month on average, versus five previously[2]. 

It’s likely when the prepayment cap rises to £2,017, on April 1st, that households could see a £10 top up last for even less time than they typically budget for.

A fifth (21%) of those with prepayment meters have skipped hot meals because they cannot afford to top up, an increase of almost a quarter (23%) on the proportion who did so at this time last year[1]. 

Over a third (35%) have worn a coat, hat and gloves indoors to fend off the cold rather than putting the heating on, while nearly a fifth (19%) have sat in the dark to avoid using energy. One in 10 (10%) of people have also not been able to make an important call because they ran out of battery on their mobile phone while avoiding charging in order to save energy[1]. 

Nearly a sixth (13%) of those on prepayment meters say they want to move to a traditional meter instead[5], while 16% of people who have either not tried to move to a credit meter, or were not successful in switching over, did not realise it was even possible to move[6]. 

Of those who have considered switching to a traditional meter, 13% said their landlord had or would prevent them from doing so, while one in ten (12%) are confused by the process[6]. 

Meanwhile, 7% of people who tried to move were prevented from doing so because their supplier said they were in too much debt, while 6% could not afford to pay the upfront cost of a deposit for a new meter and 5% failed a credit check[6]. 

Jean Hayes, community engagement lead at Uswitch.com said: “The upcoming increase in the energy price cap is going to be challenging for everyone, but people on prepayment meters are set to be hit hardest.

“Prepayment customers are often the most financially vulnerable, and our research suggests some are already being forced to make a tough choice between heating and eating.

“As the rapidly rising cost of living eats into many households’ budgets, it’s alarming to see that a sixth of people with prepayment meters have already felt compelled to avoid using their electricity for days at a time this year - and this is before the new energy price cap even takes effect.

“Prepayment meters often make energy more expensive than standard credit meters, so anyone who is finding it unaffordable should speak to their supplier and see if moving to a standard meter could be an option for them.”


Find out how you could save with Uswitch here.

FOR MORE INFORMATION

Ross Stebbing
Phone: 07827 836 709
Email: ross.stebbing@rvu.co.uk
Twitter: @UswitchPR

Notes
Research conducted online by Opinium, 15 to 21 February 2022, among 500 people on a prepayment meter, weighted to be nationally representative.
1. Respondents were asked for February 2021 and February 2022, ‘Have you ever done the following because you couldn’t afford to top up your prepayment meter?’ 29% said they put on a coat, hat and gloves to fend off the cold in 2021, 35% said they did in 2022. 17% said they skipped hot meals in 2021, 21% said they did in 2022. 16% said they sat in the dark in 2021, 19% said they did in 2022. 11% said they did not use energy for two or three days in 2021, 15% said they did the same in 2022. 6% avoided making calls because they ran out of battery in 2021, 10% did in 2022.
2. Respondents were asked ‘When putting ten pounds of credit on your prepayment meter, how long would it last you during each of the following periods - February 2021 and February 2022?’ Average in 2021 was 5.8, average in 2022 was 4.4 
3. Ofgem
4. Respondents were asked ‘How much did you pay for electricity and gas for the most recent full month?’ Average was £97.40. In research conducted by Opinium 4 to 10 January 2022 among 2,000 UK energy bill-payers, respondents were asked ‘How much do you pay for your energy bills each month?’ Average for people on SVTs was £96.40, average for people on fixed tariffs was £92.70. 
5. Respondents were asked ‘Which, if any, of the following statements apply to you?’ 13% said the statement ‘I want to move to a traditional credit meter’ applied to them. 
6. Respondents who have not tried to move to a credit meter or were not able to were asked ‘You mentioned you have tried to move to a traditional meter but didn’t succeed, or have not tried, why was this?’ 16% said they did not realise it was possible to move. 13% said my landlord said I couldn’t / would say I can’t, 12% said ‘I am confused by the process’, 7% said ‘my provider said / would say I was in too much debt’, 6% said ‘I could not afford the deposit’, 5% said ‘I failed a credit check’ and 4% said ‘I didn’t want to take a credit check’. 

About Uswitch 

Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.

In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips. 

Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.