Pre-payment meters heighten debt risks
Pre-payment meters heighten debt risks
Tuesday 30th September 2008
Research conducted by Ofgem found that the meters cost users an average of £1,315 a year.
This is some £116 more than a standard customer would pay if they used direct debit and £244 more than being on an online energy plan.
Responding to the findings, Ann Robinson of price comparison site uSwitch.com urged customers who use PPMs as a way to monitor their outlay on energy to switch to a cheaper method.
She added: "While it could be argued that a PPM will help them to monitor their energy usage, this comes at a cost and I would urge consumers who believe that having a PPM installed could help them cope better with rising energy prices to think, and think again. PPMs should carry a financial health warning."
Of the 5.9 million consumers who use meters to pay for their energy, just one million are repaying a debt.
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