The Treasury has announced that it will scrap extra charges for prepayment meter (PPM) users in the upcoming budget, potentially saving four million households £45 per year on their energy bills.
Currently, people on PPM pay more on average than those on direct debit because of costs passed on by meter management companies.
Chancellor Jeremy Hunt stated that it is unfair and pledged to end the practice – from July, four million households will pay no more than those on direct debits.
The Treasury estimates this change will cost £200m.
The Chancellor noted that energy bills have already been cut by nearly half this winter and this latest reform demonstrates the government’s commitment to supporting families.
Last week, Ofgem launched a national evidence call to gather feedback from energy customers who have moved to a PPM in the past couple of months.
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