Written question asked by Jon Trickett (Labour) on Thursday, 11 November 2004, in the House of Commons. It was due for an answer on Tuesday, 16 November 2004. It was answered by Mike O'Brien (Labour) on Tuesday, 16 November 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Deputy Prime Minister, what assessment he has made of the effects of the provision of utilities by means of prepaid meters on communities at risk of social exclusion; and if he will make a statement.

Answer: Jon Trickett: To ask the Secretary of State for Trade and Industry what assessment she has made of the effects of the provision of utilities by means of prepaid meters on communities at risk of social exclusion; and if she will make a statement. [198757] Mr. Mike O'Brien: Although the use of prepayment meters is concentrated among lower income customers, it is not synonymous with vulnerability or the risk of social exclusion. Prepayment meters enable customers to monitor and control expenditure on energy electricity supply, and are, in some cases, a valuable alternative to disconnection for non-payment of bills. Because of the additional cost of the meter and the administrative infrastructure that supports it, prepayment tariffs are customarily higher than those of other payment methods, although the differential will vary from company to company. Prepayment meter users may, therefore, be able to reduce their energy bills by switching supplier, as well as by seeking a cheaper, simpler payment method, which will, for most customers, be direct debit.

Secondary information