ENERGY customers who use 'pre-pay' meters pay an average of £226 more per year than customers who make the most of direct debit deals, research has revealed.

National charity Citizens Advice has compared energy companies’ cheapest prepayment meter (PPM) tariffs with the best online direct debit deals available.

Their research shows PPM customers pay on average 22 per cent more, and people in some parts of the country pay more than others, which the charity says highlights that competition is 'not working for all consumers'.

Citizens Advice has now called on the Competition and Markets Authority (CMA) to address this 'unfairness', and ensure the poorest and most vulnerable customers, including those on PPMs, are better served.

Peter Dickinson, financial resilience co-ordinator with Pembrokeshire Citizens Advice, said: “Pre-pay energy consumers get a raw deal.

"Research by our national body shows that many PPM customers have to fork out hundreds of pounds more than those on online direct debit deals.

"This unfairness leaves some of the poorest people struggling to heat their homes and having to make difficult choices with their limited income."

One Pembrokeshire resident, a single parent of two children under five, living in a two-bedroom flat, was paying £1,440 on a pre-payment meter.

By switching supplier and paying by direct debit, they saved £419, or just over 29 per cent.

For free, confidential, independent and impartial advice with your gas and/or electricity bills, contact Rob or Peter by leaving a message on 01437 764 330 or email ebd@pembscab.org.uk.