Plus, we’ve explained how to get help with your bills
- James Flanders, Chief Consumer Reporter
MILLIONS of households using prepayment meters have been issued a summer warning to dodge surprise energy bills this autumn.
More than four million customers who rely on these meters to pay for their energy in advance are being advised to keep their meters topped up during the warmer months.
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Citizens Advice warns that failing to do so could lead to unexpected deductions from their credit due to daily “standing charges” that continue to accrue, even when energy isn’t being used.
In a recent post on X, the charity warned: “If you use a prepayment meter, keep topping up your gas account over the summer months.
“Make sure you’re adding enough to cover your daily standing charges so you’re not hit with an unexpected bill this winter.”
The problem arises when people switch off their heating and use less energy during the warmer months, assuming they can stop topping up.
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However, standing charges still build up daily, even if no credit is added.
These fees, currently 32.67p per day for gas and 53.8p for electricity, cover the costs of keeping the energy network running, including maintaining wires, pipes, and cables, as well as staffing and office expenses.
“If you turn off your gas central heating and stop topping up your gas meter over the summer months, then these charges will be waiting when you next top up,” Citizens Advice said.
This means a significant portion of any future top-up will be immediately swallowed up by accumulated standing charges, leaving customers with less energy than expected and forcing them to top up again sooner.
Citizens Advice said: “To avoid being stung by unexpected payments this winter, make sure you’re adding credit to your meter throughout the summer so your standing charges are covered.”
Keep in mind that the standing charge you pay can vary based on your energy supplier, tariff, and where you live.
You can check the exact amount on your most recent bill or through your online account.
Can I avoid the standing charge?
MOST suppliers slap you with the charge, but there is one exception.
Utilita, which only serves prepayment meter customers, has ditched it altogether.
Instead, the company integrates the cost into its gas and electricity rates.
Utilita operates a two-rate system. The first rate, which is slightly higher, covers standing charge costs.
Once 2kWh is consumed (and standing charge costs are covered), customers automatically switch to a cheaper rate for the rest of the day.
But this alternative might not suit everyone, particularly those who do not want to prepay for their energy.
According to industry association Energy UK and watchdog Ofgem, eliminating the standing charge altogether isn’t a straightforward solution.
A spokesperson for Energy UK said: “If you were to switch these costs to the ‘per unit’ charges, then those customers disadvantaged by the current system, such as low usage households, would benefit.
“But other customers, who might be more reliant on energy or have a less well-insulated home, could end up paying significantly more.”
CHANGE ON THE HORIZON
Millions of households will be able to access “no standing charge” energy tariffs at all suppliers from this winter.
Charlotte Friel, from Ofgem, said last week: “We’re looking closely at how these tariffs will work in practice, but everyone will need to carefully consider which option best suits their needs.
“The costs included in the standing charge ultimately have to be paid. But while they may not save everyone money, they will give people a choice, and greater control over their bills.”
The regulator first announced the shake-up to energy rules in December last year but it confirmed firms will have to offer the tariffs to customers in time for winter back in February.
It also announced a consultation on how the new tariffs would work.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
