Time for opt-out option on pre-payment meters says Age Scotland

Age Scotland are backing calls from their sister charity Age UK for an energy pre-payment meter amnesty which would allow customers to opt out of this form of costlier, pay-as-you-go energy supply.

They also support Age UK’s call on the UK Government to introduce a social tariff for energy which would cut the cost for people on the lowest incomes.

Age Scotland’s head of policy and communications Adam Stachura said:

“We’re extremely concerned about the impact pre-payment meters are having on older people on fixed and low incomes and believe that a prepayment meter amnesty, which would allow households the option of having them removed and transferred to a credit-based meter at no additional cost, is a sensible move.

“There are around 86,000 older households in Scotland with a pre-payment meter, and while it can be a useful way to budget and manage energy costs for some, it is not always the most appropriate or reasonable arrangement.

“With energy bills putting a huge strain on almost all households, it is fundamentally unfair that those on prepayment meters, and often with the lowest incomes, typically pay the most for their energy. The standing charge alone can be 20% more per day in Scotland if you have a pre-payment meter compared to paying by Direct Debit - and that’s before you use any energy.

“Once a meter is installed, there is little to no flexibility and it can prove near impossible for customers to negotiate their way back to an alternative means of payment, leaving them at increased risk of fuel poverty and having their supply cut off if they run out of credit.

“While energy firms have paused the force-fitting of prepayment meters until the end of this month, this will not go far enough. Permanently banning this practice is the only sure-fire way to protect vulnerable older customers.

“As the UK Government continues to explore how the energy market can be reformed, they could introduce a social tariff for energy so that many low-income households, those in fuel poverty, disabled people, and carers see their bills cut and this overwhelming burden on their tight finances eased.”