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Prepay energy customers still paying more for less

25 June 2015

Prepay energy customers are paying more money for poor service, Citizens Advice has said.

Responding to today’s Ofgem report into unfair treatment of prepayment meter customers, the national charity said some suppliers are still failing consumers.  

The Citizens Advice campaign, Fair Play for Prepay, prompted the regulator to take action on prepay meters, after highlighting poor customer service, high costs, and a lack of choice for customers in the prepay market.

The findings come just days before the Competition and Markets Authority (CMA) is due to publish interim findings on its major review of the energy industry.  

Gillian Guy, Chief Executive of Citizens Advice, said:

“Prepay energy consumers pay more for a second rate service.  Too many prepay customers can also feel locked out of the best deals by unfair charges.

“Some suppliers are helping customers with fairer tariffs and new ways of managing energy use, but others are getting worse. It is encouraging that Ofgem has reviewed this part of the market and the regulator is right to suggest scrapping unfair charges.

“Our Fair Play for Prepay campaign has revealed the scale of the problem facing prepay energy customers: the CMA must take action now to ensure they get a fair deal.”

Notes to editors

  1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
  5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.