The proportion of customers repaying a debt to their supplier using a prepayment meter (PPM) (%)

At-a-glance summary

The proportion of domestic customers repaying debt who are paying via a prepayment meter has stayed broadly static in the last three years. Gas customers continue to be more likely to repay a debt via a PPM than electricity customers.

Relevance and further information

On 1 April 2017 we introduced a cap on the amount suppliers can charge a domestic PPM customer. Suppliers must set their prepayment prices at or beneath this level. PPM customers have fewer competitive tariff choices and are exposed to the risk of self-disconnection. Since the PPM cap, prices for PPM tariffs have become more competitive with other payment methods.

Methodology

When a customer falls into debt, suppliers must always offer them a range of debt repayment options – including the option to repay via a PPM – to customers. If no payment arrangement is agreed, suppliers may obtain a warrant to install a PPM to secure payment for ongoing energy use and debt repayments. This must be a last resort to avoid disconnecting the customer. A debt repayment arrangement is an arrangement to repay debts which lasts more than 91 days/13 weeks.