NHF Slams Fuel Prepayment Meters

By Jayne Davison
Published on 1 Sep 2008
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NHF Slams Fuel Prepayment Meters

Many low-income families are being hit by unfair premiums for their fuel, the group has suggested.

Some of Britain's poorest families are being charged unfairly high premiums for using prepay meters for their gas and electricity, a new campaign claims.

The National Housing Federation (NHF) is aiming to draw attention to the issue during its Energy Action Week, which begins today. According to its own figures, households paying their energy bills through such meters are being charged £150 more a year than those who do so through direct debit, and £60 more than those who pay cash or cheque.

Many meter owners are using this payment method because they have no alternative: many do not have a bank account through which they can set up a direct debit. Therefore, those who are paying the most for their energy are often those who are least well-off in the first place.

Exacerbating the budgetary strain is the fact that most of the UK's largest energy firms have recently introduced big increases in their general gas and electricity plans, just in time for autumn.

John Pierce at the NHF commented: "A quarter of prepayment customers are 'fuel poor', which means they spend over ten percent of their household income on gas and electricity, and this burden is only increased by the high tariffs forced on them by prepayment meters.

"We are not opposed to prepayment meters as housing association tenants can sometimes struggle to pay large quarterly bills and the meters give them the chance to budget carefully. But it is unfair that they are over-charged when they are already struggling with a low income."

The NHF represents around 1,300 housing associations across the UK - and is the leading such body in the country.

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