Energy charity warns prepayment customers face monthly bills of more than £700 by January

dailyrecord.co.uk:

The Fuel Bank Foundation is warning that millions of people will be forced to live without heat, light and power in their homes this winter due to the rising cost of topping up their prepayment energy meter.

Ofgem announced last week that prepayment meter customers will pay £3,608 per year on the new price cap from October 1. Energy prices are forecast to rise even higher in January (£5,111 for prepayment customers) and the charity says prepayment meter users will be the hardest hit.

It says the cost to top up each month is expected to increase to £251 from October and £480 by December.The Fuel Bank Foundation says these estimates will see four million households across the UK with a prepayment meter - the majority of whom are on a low income - face an energy bill of £713 in January 2023 alone.The charity, which funds emergency fuel for people who can’t afford to top up their prepayment meter, says spiralling energy prices will lead to more people rationing or self-disconnecting.Matthew Cole at Fuel Bank Foundation, said: “The impact of further energy price increases in October and January will be catastrophic for millions of vulnerable and low-income households across the UK that are already at financial breaking point.“In January 2022, at the peak of last winter, prepayment meter customers paid on average £183 for a month’s energy.

By this Christmas the same customer will need to pay £480 for energy during December alone.“A 262% increase, or in real terms, having to find an extra £297 in one month isn’t financially feasible and will inevitably lead to more people living without the essentials to survive during winter because they can’t afford to put money in their meter.”He warned: “It has now gone beyond a choice of