Those with energy debt should turn to prepaid meters as ‘last resort’

Households struggling to handle their energy debt management have been warned to turn to prepayment meters only as a last resort.

Price comparison site uSwitch has urged consumers to avoid the meters if possible as they can be more expensive in the long run.

It comes after regulator Ofgem’s Social Obligations report showed that 5.9 million people are currently on prepaid meters.

They cost around £116 more than a standard direct debt plan and £244 more than an online energy tariff, the study added.

Consumer policy director for uSwitch Ann Robinson commented: “Clearly the biggest concern for all consumers at the moment is how to cope with rising energy prices … make sure you are paying the lowest possible price for your household energy.”

Recently, the government announced a £1 billion Home Energy Saving Programme designed to help households install energy efficiency measures that could save them up to £300 a year on bills.