Energy suppliers have been accused of making some of their biggest profits from their poorest customers.
Energy suppliers make some of their biggest profits from their poorest customers, a watchdog has said.
Watchdog Consumer Focus has estimated that firms are making about half a billion pounds a year in extra charges for customers on prepayment meters.
Firms make about half a billion pounds a year in extra charges from prepayment meters, Consumer Focus estimates.
It added that 1,000 prepayment meters a day are being installed in households where people have got into debt over their energy bills.
About 1,000 prepayment meters a day are being installed in households where people have got into debt over their energy bills, it says.
Some customers are being forced to use prepayment meters, it also said.
Industry body the Energy Retail Association says many people like the meters because they help them budget.
Jonathan Stearn from Consumer Focus says energy firms are using customers who pay for their gas or electricity by prepayment meter to subsidise customers who can get the cheapest deals.
"Companies could be making up to £550m a year from extra charges they charge on prepayment meters," he told BBC News.
They're being pushed onto prepayment meters Tony Herbert, Citizens Advice
"The energy companies are making the most money out of those on prepayment meters and often those are the people on the very lowest incomes."
The energy industry body, the Energy Retail Association, says that many people like prepayment meters because they allow them to budget effectively.
But the industry is now under pressure from the regulator, Ofgem, to cut the prepayment tariffs.
But the industry is now under pressure from the regulator, Ofgem, to cut the prepayment tariffs.
They're being pushed onto prepayment meters Tony Herbert, Citizens Advice Consumer Focus says some customers are being forced to use prepayment meters.
It said energy firms are using customers who pay by prepayment meter to subsidise customers who can get the cheapest deals.
"Companies could be making up to £550m a year from extra charges they charge on prepayment meters," said the watchdog's Jonathan Stearn.
"The energy companies are making the most money out of those on prepayment meters, and often those are the people on the very lowest incomes."
Rules broken
Rules broken
Tony Herbert, Social Policy Officer at Citizens Advice, says its offices have seen a small number of cases where companies have pushed customers onto prepayment meters when they have not given them other options to pay any outstanding debt.
Tony Herbert, Social Policy Officer at Citizens Advice, says its offices have seen a small number of cases where companies have pushed customers onto prepayment meters when they have not given them other options to pay any outstanding debt.
He says that this is against the companies' own rules.
This is against the companies' own rules, he says.
"These people have built up debt but they are not being offered a range of payment methods and they're not being offered affordable repayment rates. They're being pushed onto prepayment meters."
"These people have built up debt but they are not being offered a range of payment methods and they're not being offered affordable repayment rates," he said.
"They're being pushed onto prepayment meters."
Samira Naji, who lives in North London, had a prepayment meter fitted by E.ON after the firm said she owed over £700.
Samira Naji, who lives in North London, had a prepayment meter fitted by E.ON after the firm said she owed over £700.
The problem was that she had been paying another supplier - EDF - for her electricity and didn't think she owed a penny.
The problem was that she had been paying another supplier - EDF - for her electricity and didn't think she owed a penny.
Because of a mix-up over the meter, she was paying the wrong company.
Because of a mix-up, she was paying the wrong company.
'Shocked and confused'
'Shocked and confused'
After weeks of disagreement E.ON got a court warrant to fit a prepayment meter, and - while she was on holiday - removed the locks to gain access to her flat.
After weeks of disagreement E.ON got a court warrant to fit a prepayment meter, and - while she was on holiday - removed the locks to gain access to her flat.
When Ms Naji returned from holiday, she thought she had been burgled.
When Ms Naji returned from holiday, she thought she had been burgled.
"I was really really shocked and confused. I didn't realise they could come into my property, especially if I was away on holiday."
"I was really, really shocked and confused. I didn't realise they could come into my property, especially if I was away on holiday."
When contacted by the BBC EDF, the company Ms Naji had been paying for the last six years, said it would refund the disputed energy bill.
When contacted by the BBC EDF, the company Ms Naji had been paying for the last six years, said it would refund the disputed energy bill.
E.ON said it would write off the court costs and try and agree terms with Ms Naji to remove the prepayment meter
E.ON said it would write off the court costs and try to agree terms with Ms Naji to remove the prepayment meter.
/>
Do you use a prepayment meter? Are you considering switching to a meter, or were you advised to use one?
Do you use a prepayment meter? Are you considering switching to a meter, or were you advised to use one?
Send your comments using the post form below, or text 61124.
Send your comments using the post form below, or text 61124.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
