Prepayment meters: Energy companies must pay back ‘Poverty Premium’ to those impacted
The Liberal Democrats have called on the Government to ensure energy companies pay back at least the ‘Poverty Premium’ paid by the tens of thousands who had a prepayment meter forcibly installed this winter in compensation.
Speaking in Parliament today, Liberal Democrat MP Wera Hobhouse challenged Energy Minuster Graham Stuart, to apologise and ensure all discussions around compensation for prepayment meters at least cover the extra money paid by those on prepayment meters against their will. The Minister refused to make these commitments.
FairbyDesign estimate that those on prepayment meters typically cost around £130 a year more than paying by direct debit, money which could substantially improve the living conditions of someone struggling to pay their energy bills.
Wera Hobhouse MP recently had her Bill, which would have prohibited the forcible installation of prepayment meters this Winter, blocked by the Conservative Government.
Liberal Democrat Climate and Energy Spokesperson and MP for Bath, Wera Hobhouse, who made the call, said:
“It's time for the government to step up and make sure energy companies repay at least the 'Poverty Premium' they've charged the thousands of households who were forced to have a prepayment meter installed this winter in compensation.
“The Conservative Government crashed this economy causing one of the worst winters in living memory, blocked my Bill which would have helped these vulnerable people and are allowing these predatory schemes to continue.
“Ministers must urgently ensure energy companies repay those affected or risk plunging people further into debt and leaving millions wondering how long the heating and lights will last on their limited budget.”
ENDS
Notes to Editor:
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Text of the question
On the 7th of December I put down my Private Members Bill to ban the installation of prepayment meters this winter. The Government ignored me. Since then and Ofgem stepping in, thousands of people will have been put through the misery of a prepayment meter warrant being taken out against them. Will the Government now apologise and ensure energy companies pay back the ‘poverty premium’ so many vulnerable people have been forced to pay this winter?
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Figures on the number of people who have had prepayment meters forcibly installed using research from the i
533,760 applications for warrants for forcible installations over 18 months, between July 21 and January 23 meaning tens of thousands over the Winter.
