Ofgem, the UK energy regulator, has released figures showing that, nationally, UK prepayment meter customers are losing out on savings worth a total of GBP250 million by not switching supplier. According to the watchdog, this works out as an average saving of around GBP100 a year for each customer who has not switched, which is a much bigger saving than for Direct Debit customers, who can save on average around GBP60 by switching. Ofgem has also published new research commissioned as part of its Consumer First program, which found that prepayment meter (PPM) customers wanted more information on the deals available to them and remained largely unaware of the benefits of switching. As a result, Ofgem is launching a campaign to encourage PPM customers to consider three options, including whether they are eligible for a special tariff deal that their supplier might offer. The campaign will also name and shame the most expensive PPM suppliers in each UK region. Ofgem said that, while Scottish and Southern Energy offered the best deal for PPM electricity customers, npower offered the worst deal. In addition, ScottishPower offers the best prices for PPM gas customers, while British Gas offers the worst deal, unless its customers are on its British Gas Essentials Tariff. The watchdog said that, unlike other customers, PPM customers are usually better off ‘pick and mixing,’ taking their gas from one supplier and their electricity from another, rather than opting for a dual fuel deal. Ofgem chief executive, Alistair Buchanan, said: “PPM customers should take advantage of the competitive market if they are to see further falls in their energy bills. Our research shows that by changing supplier they can save on average around GBP100. But in some regions this can be as great as GBP170 per year.”

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