Business, Enterprise and Regulatory Reform written question – answered at on 18 February 2008.
To ask the Secretary of State for Business, Enterprise and Regulatory Reform pursuant to paragraph 2.1.25 of the 2007 Energy White Paper, what ways of reducing the costs associated with pre-payment meters his Department has considered; and if he will make a statement.
holding answer
The costs associated with pre-payment meters reflect the higher cost of the meter itself, as well as that of the complex payment and support infrastructures required to support them, involving suppliers, meter owners and thousands of retail outlets.
Gas and electricity suppliers have been considering their tariff structures and two companies have equalised their standard credit and prepayment prices for electricity, while one offers prepayment customers a lower price for both fuels than that paid by standard credit customers. In addition, some suppliers offer social tariffs and other measures that benefit their most disadvantaged customers.
I will continue to look with Ofgem and the energy companies at ways of reducing the costs associated with pre-payment meters. I also support Ofgem's work to promote access to cheaper payment methods, especially direct debit.
The Government will shortly set out their next steps on smart meters. Such meters could significantly reduce the cost of serving a prepayment meter customer.
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