The government has announced plans to provide additional financial support for energy customers with prepayment meters. If you have a prepayment meter, or are considering getting one installed, we're here to help you understand the upcoming changes with a quick breakdown of the latest news.
What is a prepayment meter?
Now, before we get started, let’s talk about what a prepayment meter (PPM) is. A prepayment meter is an energy meter where you pay for energy before you use it by topping up with a prepayment card or key. This type of meter is also known as a pay-as-you-go meter. Learn more about prepayment meters and how to top up your credit.
The government to provide additional support for PPM customers.
The government is set to help 4 million households with prepayment meters save on their energy bills from 1 July 2023.* They are introducing a unit-rate discount to pay-as-you-go customers through the existing Energy Price Guarantee.
The discount will cover the additional costs needed to manage PPMs. These costs are currently being passed on to prepayment customers through higher unit rates and standing charges when compared to Direct Debit customers.
From 1 July until 30 September, this new unit-rate discount will only be applied to gas unit rates. The combined difference in unit rates and standing charges for electricity will be lower for PPM customers than for equivalent Direct Debit customers during this period, and so the discount will not be applied to electricity rates at this time.
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