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CFU welcomes Ofgem cap on prepayment meters

The Consumer Futures Unit has welcomed the news that the energy regulator Ofgem is to impose a temporary cap on prepayment energy meters. 

Craig Salter, Energy spokesman for Citizens Advice Scotland’s Consumer Futures Unit, says:

“This is a welcome step which will help some of the most vulnerable consumers in Scotland to make much-needed savings in their bills.

“Evidence shows that PPM customers are generally more likely to be dis-engaged from the market, have less access to lower cost tariffs, and are more likely to be fuel poor and financially vulnerable.

“We are concerned however that this cap is set at a significantly higher rate in the north of Scotland than elsewhere, as this area has high levels of fuel poverty, and PPM consumers in the North of Scotland already pay 7.7% more for their electricity than the UK average.

“Even with the benefit of the Hydro Benefit Replacement Scheme, PPM consumers in the North of Scotland are likely continue to pay more than other areas. We would be keen to meet with OFGEM to discuss ways of resolving this issue.”