Cost of living crisis: Sheffield councillor welcomes Labour pledge to scrap ‘outrageous’ extra charges for prepayment energy meters

Thousands of South Yorkshire low-income households use prepayment meters for gas and electricity. Their price cap is about 2% higher than for direct debit customers, according to energy regulator Ofgem.

Sheffield City Council member Ben Miskell has welcomed Labour’s plans in Westminster to scrap what he called ‘outrageous’ premiums.

He said that prepayment meter customers will pay around £84 per year more between October to December and more than £100 more in January to March, if the prepayment price cap continues to be set at the current level.

Councillor Miskell said that it is effectively an additional energy tax on the poor.

The Park and Arbourthorne ward councillor said: “Too many people in my ward have to worry about not having enough money to top up their prepayment meters and having to sit in a cold, dark home throughout winter.

“Children doing their homework by candlelight is Dickensian but it’s where we are heading, unless the government acts.”

He added: “It is clear that energy prices are out of control and the poorest in society shouldn’t have to pay over the odds for their gas and electricity, just because they use a prepayment meter.”

Arbourthorne resident and prepayment meter user Jen Dunstan said: “For families like mine and so many others who are on a low income, using a prepayment meter is convenient, as it means that we don’t get unexpected bills that we can’t afford.

“But wages and benefits haven’t increased to meet the rising cost of energy and on top of that the standing charges for our meters have risen too. The fact that we pay substantially more for our energy, just because we use a prepayment meter, is really unfair.

“As a family we often have to go without so many essential things in life because the cost of energy from our prepayment meter is so high.

“Getting rid of these unnecessary charges that hit some of the poorest in my community will help to make a big difference.”

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