Prepayment meter tariffs rise

The new energy price guarantee saw the annual bill for an average household rise to a staggering £2,500, which is approximately 80 percent more than what people were paying this time last year. However, households experiencing difficulty covering the soaring costs may be forced to switch over to a prepayment meter.While using a meter can make it easier for consumers to avoid falling into energy debt, there are certain rules energy providers must follow when it comes to installation.What is a prepayment meter?A prepayment meter is a type of pay-as-you-go energy tariff, which means households must pay for their electricity before they use it by topping up the credit on the meter.Despite the pay-as-you-go nature of this tariff, customers still have access to the £400 energy bill support scheme. Depending on the meter, smart or traditional, people will either have the discount credited directly to the meter or through vouchers issued by text, email or post.However, prepayment meters are typically more expensive than ordinary meters and offer fewer tariffs, and energy firms can also dock debt from the top-ups. Those who cannot afford to top up their meter run the risk of being disconnected from their power.READ MORE: Rishi handed £5bn ‘value for money’ energy lifeline to slash bills Can you be forced to have a prepayment meter? Your rights as 10,000 a month could face one (Image: GETTY)While it might seem impermissible, there are instances where energy providers may be able to make moves to set up a customer on a prepayment meter.Bionic content manager Les Roberts said: ‘If you fall behind on your energy bill payments, your supplier can take steps to install a prepayment meter in your home.’However, there are some conditions they must follow prior to installation, according to Mr Roberts.He said: ‘They have to give you at least 28 days to repay any debt you fall into before this happens.DON’T MISS:’It’s falling’ – the best financial news this year [ANALYSIS]Octopus Energy shares boiler hack saving customers £112 a year [EXPLAINED]Britons given more time to redeem prepayment meter vouchers [INSIGHT] Energy prices have been on the increase, globally, since the start of the year (Image: EXPRESS)’You can also ask for a break from payments until you can afford to pay, a reduction to an affordable rate and more time between payments. Your provider should also give you access to advice about how to reduce energy usage.’Providers must also enable access to any available hardship funds, charitable grants, or help with applications for any available Government grants if they have not been automatically applied.This can include schemes such as the Cold Weather Payment, which is available when the temperature drops below a certain level and a person is at state pension age or claiming certain benefits.However, Mr Roberts noted: ‘When you are on a prepayment meter, you are able to access a small amount of emergency credit when you’re running out of money on your meter and your supplier must tell you how to do this.’But, he continued: ‘Bear in mind, any emergency credit you use must be paid back.”