E.ON has becomes the first of the large energy suppliers to offer prepayment meter users the same prices standard customers pay – if they agree to have a smart meter installed.
Until now, customers using prepayment meters have paid substantially higher prices than those paying by direct debit.
Because they are usually tenants or those deemed a financial risk, the poorest households have tended to pay the highest energy bills.
E.ON’s Smart Pay As You Go tariff equalises prices. Initially it will only be available to the first 30,000 existing E.ON customers who sign up to the pilot, although the company expects to expand the scheme in 2016.
The company said the move would typically save users around £100 a year on gas and electricity bills. It is also £67 a year cheaper than the current best prepayment deal – Ovo’s Smart PAYG Energy Plan. It is also hoped that it will give the take-up of smart meters a boost.
David Bird, E.ON’s operations director, said: “We understand that for our customers there’s no ‘one size fits all’ when it comes to managing and paying for the energy they use.”
He added: “We’re pleased to be one of the leaders in providing the services that we know our customers want, as well as strengthening our commitment to those customers who may need additional support.”
He said the new smart meter would allow users to view their balance online and keep track of what they’re spending. They will have to top up the meter by phone or online rather than paying cash at a local shop, which is the current method.
