An estimated 3.2 million people across Britain ran out of credit on their prepayment meter last year, the equivalent of one every 10 seconds, because they could not afford to top it up, Citizens Advice said.
The advisory service said it saw more people who were unable to top up their prepayment meter in 2022 than in the whole of the last 10 years combined, breaking the charity’s predictions for the number of householders it would help as the cost-of-living crisis took hold.
Furthermore, more than two million people were being disconnected at least once a month and 19% of those cut off in the past year then spent at least 24 hours without gas or electricity, leaving them unable to turn the heating on or cook a hot meal.
Citizens Advice, which is the consumer watchdog for the energy market, said it was particularly concerned about disabled people and those living with long-term health conditions.
Almost one in five households (18%), including someone in this group who ran out of credit last year, went on to spend two days or more without energy supply.
Ofgem stipulates that certain groups such as disabled people and those with long-term health conditions should not be forced on to a prepayment meter.
Citizens Advice previously raised concerns to Ofgem and the Government that it had seen evidence of suppliers forcing people in these groups on to prepayment meters.
In October, Ofgem warned suppliers that not enough was being done to identify customers in vulnerable circumstances before installing a prepayment meter.
But Citizens Advice said that in the month following Ofgem’s intervention, more than a third of prepayment meter households including a disabled person, or someone with a long term health-condition, were cut off from their energy supply at least once.
The charity is now calling for a total ban on forced prepayment meter installations until new protections are introduced, ensuring households can no longer be fully cut off from gas and electricity.
It said it had heard from people forced on to a prepayment meter who were unable to top up even though their medication needed to be refrigerated, and a single parent with a young baby who was left in the cold and dark for 48 hours after her supplier switched her to a meter.
Based on Ofgem figures, Citizens Advice estimated that 600,000 people were forced on to a prepayment meter because they could not afford their energy bills in 2022.
It predicts 160,000 more people could be moved on to a prepayment meter by the end of winter if no further action is taken.
Citizens Advice chief executive Dame Clare Moriarty said: “All too often the people finding it hardest to pay their bills are being forced on to a prepayment meter they can’t afford to top up.
“This puts them at real risk of being left in cold, damp and dark homes.
Energy firms and the Government should hang their heads in shame
“The staggering rise in the cost of living means many simply cannot afford to heat and power their homes to safe levels.
“New protections are needed to stop people being fully cut off from gas and electricity. Until then, there must be a total ban on energy companies forcing those already at breaking point onto prepayment meters.
“If Ofgem doesn’t act, the Government must intervene.”
Energy UK deputy chief executive Dhara Vyas said: “Suppliers are required to have exhausted all other options before installing a prepayment meter by warrant – only after repeated unsuccessful attempts to contact the customer to discuss repayment options and checks to ensure they do not go ahead when customers are in the most vulnerable situations.
The staggering rise in the cost of living means many simply cannot afford to heat and power their homes to safe levels
Relying on credit or the generosity of family and friends to put food on the table, heat your home and keep a roof over your head can be a constant source of stress
