Thursday 16 July 2015

Phil calls for a "New Deal" on Prepayment Meters in order to tackle Fuel Poverty

Phil has called for a “New Deal on Prepayment Meters” in an early day motion in the House of Commons.

According to Ofgem, customers using prepayment meters are missing out on savings worth £250 million/year.

In the motion, he noted the “disproportionate costs incurred mainly by poorer households who pay for their gas and electricity using a prepayment meter.”

Phil Boswell MP has proposed an alternative to the current scheme, in which each energy supplier prioritises the installation of Smart Pay As You Go Meters for their poorest customers, publishes the additional costs incurred in supplying and maintaining each prepayment meter, abolishes fees for the installation and termination of a prepayment meter, provides two-week credit tokens to households relying on food parcels and who cannot afford to top up their prepayment meter, and offers rebates to prepayment customers caught out by the standing charge on their meter over the summer months.

This alternative scheme offers relief to those households facing fuel poverty and those on lower incomes already struggling to make ends meet.

Commenting on the proposed “New Deal”, Phil said:

“Those on lower incomes often struggle to make ends meet, particularly during the colder months. According to leading charities, the current scheme of prepayment meters is a major factor in causing fuel poverty. This ‘New Deal’ will provide relief to those households using prepayment meters which often already struggle to buy and cook food.”