Gas and Electricity Meters- Eating Your Money?

With the credit crunch not showing any signs of slowing down, fuel and coal prices are still soaring, having a catastrophic effect on the prices of household electricity and gas bills, especially those who use pre-paid methods such as the electricity and gas meter. On average, people who pay using a meter pay £224 more per year than those who pay by direct debit.

Even though it is impossible for energy firms to stop rising their prices (because of the ever-increasing prices of coal and fuel), it is being argued that the 5.9 million people who use PPM's (Pre-Paid Meters) are getting an unfair deal. Many of the 5.9 million PPM users choose this method as a way of budgeting and to keep on top of their bill, which is, in effect, a guaranteed method of payment where the company is concerned. However, higher prices mean that people are finding it more difficult to find money to pay for their electricity and gas usage.

It is not only PPM's which are more expensive to run than by paying by direct debit. Those who pay quarterly by cash or cheque can pay around £80 more per year. These prices are making more and more people suffer from ‘fuel poverty', which affects those who pay more than 10% of their earnings on gas and electricity. ‘Fuel poverty' numbers are soaring with rising fuel costs, and is therefore narrowing the options of payment for the consumer- people may be forced to start paying by direct debit, even though other methods may be more convenient for certain lifestyles. This inconvenience is worrying firms such as Ofgem, (the UK's energy regulator), as this issue could have a major effect on the number of deaths amongst the elderly who may not be able to afford these higher prices.

To ensure that you are getting the best prices when gas and electricity are concerned, it is best to compare prices online. Also, if you use a PPM, it would be beneficial to do some research on electricity meters to make sure you are getting the best value for your money.