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Pre-paid meters bill unveiled

Pre-paid meters bill unveiled

Friday 21st October 2022
RYAN BEMBRIDGE

A bill is passing through parliament that will require pre-paid meters to charge the same or lower energy tariffs than via direct debit.

Energy Costs (Pre-payment Meters and Social Tariffs) Bill comes from Kenny MacAskill of the Alba Party, a nationalist party in Scotland.

MacAskill's told the House of Commons how four million households across the UK have higher costs imposed by the meters - which are particularly used by HMO landlords - calling it an "appalling anomaly". This includes 500,000 in Scotland, which is said to be the worst affected region.

MacAskill said: "Compounding that injustice are accrued standing charges even when users have been sparing in their consumption.

"Many will find that their power card or savings are immediately consumed by paying debt before they get even a modicum of power."

He added: "I accept that some have found pre-payment meters helpful for budgeting, although the strength of that argument has been sapped, if not ended, by the arrival of smart meters.

"There is also the situation of private landlords who wish to ensure that they avoid costs if a tenant should depart without paying their bill.

"Again, smart meters offer some solution, but again the issue is not the meter itself but the tariff charged. Some 13% of smart meters are on pre-payment tariffs.

"Technology is meant to liberate us, not perpetuate injustice. Pre-payment meters, whether smart or otherwise, can remain.

"What must end are the higher standing charges and tariffs. They are simply unacceptable anytime, but most especially now."

The bill has gone through its first reading, though the second reading won't be until 24th March 2023.