Prepayment Meters

Lord Harris of Haringey Excerpts

Tuesday 24th January 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness says I do not understand, but I have lived in properties with prepayment meters and I very much understand the issues. No one is forced to have a smart meter or a pre- payment meter, either, except in the limited circumstances that I have outlined, particularly for customers who are in levels of debt, and we have put in place a number of measures to try to reduce that as much as possible. I have outlined the steps that we are taking with suppliers to make sure that those are imposed on customers only in the last possible circumstances.

[Lord Harris of Haringey (Lab)]

My Lords, the argument that the Minister has trotted out, that it costs more to sustain customers who are on prepayment meters and that is why they pay more, is of course based on the days—I remember writing about this 40 years ago—when people used to put coins in the machine and then somebody had to come and empty the box. That necessarily cost the suppliers more. Nowadays, however, people have to go and have their key recharged and pay in advance, so the companies are getting the money earlier than they do for everyone else on a credit meter. So why are these customers paying more?

[Lord Callanan (Con)]

I am well aware of how the system works. The fact remains that to put in place commissions to shops and others that sell the credit to service prepayment customers over those who pay via direct debit costs suppliers more. Under the licence conditions that have existed for many years, suppliers are permitted to recover what it costs to operate those particular customers.