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Transact are campaigning to end the premium paid by pre-payment meter (PPM) users.

Energy companies should not be able to profiteer from PPM users, who are often on the lowest incomes and most vulnerable to financial exclusion.

Pulling the plug on the poverty premium

Latest News

  • Transact welcome British Gas' decision to lower its standard tariff gas prices by 10%.  Read about the decision here (BBC News).
  • David Taylor, Labour MP for North-West Leicestershire, raised the question of high premiums for pre-payment meter users in Parliament on Thursday, January 22nd.  Click here to view his question and the response from the Department of Energy and Climate Change.

About the campaign

lightbulb_thA consumer paying for both gas and electricity with a pre-payment meter (PPM) pays on average £215 more for their energy than someone using direct debit. You are up to three times more likely to use a PPM if you live in social housing, have a disability or are a single parent.  People already in debt to energy suppliers can have up to 70% of their meter payments taken in arrears, leaving little to heat their homes.  It's time to pull the plug on the poverty premium.

Click here to read more about the aims of the campaign.

Click here to read advice for pre-payment meter users from Consumer Direct.

Actions

We asked our members what you thought about pre-payment meters in December 2008.  Your responses fed into a Transact response to an Ofgem consultation, where we called on Ofgem to:

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  • Equalise charges for pre-payment meter and standard customers
  • Consider solutions other than switching to help vulnerable consumers
  • Take more action to alleviate the problem of fuel poverty
  • Put an end to the practice of debt blocking
Here is a briefing for Transact members on the parts of the Ofgem consultation relating to pre-payment meters and vulnerable consumers.  Click here to view the Transact response to the Ofgem consultation.

Ofgem's supplementary consultation response, Addressing Unfair Price Differentials, set out different proposals for changing energy pricing and introducing more regulation into the energy market. 

Transact responded to this consultation in February on behalf of our members - you can download our response here.  While we welcomed some of the proposals, we argued that none of them are enough to prevent PPM users, many of whom are on low incomes, from paying more.

Get involved - lobby your MP

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You can help to pull the plug on the poverty premium by lobbying your local MP.  We have produced a sample letter that you can send to your MP - click here to download.

To find out who your MP is and how to contact them, visit www.theyworkforyou.com and enter your postcode. You can email your MP via this website, or alternatively you can send a letter to:

xxx xxxxx MP
House of Commons
London
SW1A 0AA

Let us know what you're doing; whether you are lobbying your MP, campaigning in your local area or providing information about pre-payment meters to your clients.
If you have any questions relating to the campaign, please contact us on Transact@toynbeehall.org.uk