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.

Ofgem proposes capping prepayment meter warrant charges for indebted consumers

Notes to editors

1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.