Oral question asked in the House of Commons, by Mike Weir (Scottish National Party). It was answered on Thursday, 3 November 2005 on behalf of the Department of Trade and Industry.

Pre-payment Meters

Question: When asked about fuel poverty Ministers often make the point that consumers should consider switching suppliers, but that is difficult for people on pre-payment meters, which must be one of the few examples where people are penalised by paying cash in advance. Will the Minister look again at the matter to see if there is any way that the electricity and gas companies can be forced to give a better deal to those who have to pay through pre-payment meters? Most people do so because they have no alternative but to use such meters.

Answer: There is some switching between suppliers for people on pre-payment meters, but I acknowledge that that occurs at a lower rate than for other customers. Will I look at the matter again? Yes I will, because it is a serious concern. We want people on low incomes to be able to enjoy the kind of facilities that we all enjoy. It is true that in this case the poor pay more due to the charging structure. I will look at it again.

Secondary information