Davey urges suppliers to prioritise smart PPMs

The energy suppliers should ensure that all pre-payment meter (PPM) customers have a smart meter installed by the end of 2016, according to the energy secretary.

Ed Davey has told the suppliers that the 4.3 million households with a PPM should be have a smart meter installed, and offered a smart pay as you go tariff, as a matter of priority.

Davey said this would allow PPM customers to “get the benefits of smart meters sooner rather than later”, such as being able to top up via a mobile phone.

The energy secretary added the move would help to reduce the £105 premium PPM customers face over direct debit customers because “the new ways of topping up should mean that energy suppliers reduce their costs” and that these savings should then be passed through to the customer.

Davey warned the major suppliers that if they fail to do this, the 18 independent suppliers in the market, some of which specialise in PPM and smart deals, would present “a challenge with real teeth”.

Angela Knight, chief executive of Energy UK said: “The industry is committed to installing smart meters from next year and will replace the current pre-pay meters with smart pay-as-you-go, as soon as the technology allows.

“Smart will bring many benefits to households up and down the country.”

Sacha Deshmukh, chief executive of the smart meter Central Delivery Body, added: “Ed Davey is absolutely right to want to see smart meters rolled out to customers on pre-pay as soon as possible.

“Many people want the convenience of pay-as-you-go, and smart meters can deliver this without the inconvenience – and the price premium – attached to today’s old-fashioned pre-pay system.

“We hope suppliers and all parties involved in the programme will work together with DECC to see this important group of customers benefit from smart meters quickly.”