Ofgem has today announced new proposals to cap charges imposed by energy suppliers on customers who have fallen into debt.
Gillian Guy, Citizens Advice Chief Executive, said:
“Warrant charges can make it harder for people struggling with gas and electricity debts.
“Not only do they have to face the extra costs of having a meter installed - which can be hundreds of pounds - prepayment meters are often more expensive than standard tariffs. This means people struggling with energy debt are then faced with higher gas and electricity bills.
“Capping the warrant charges and ending them altogether for vulnerable customers will help to stop people being pushed further into debt when they are already struggling to manage their costs.”
Citizens Advice’s Fair Play for Prepay campaign sought a better deal for prepayment customers on price, easier use and more control.
Following the CMA's energy market inquiry a new safeguard tariff for prepayment meter customers will be introduced in April 2017.