One million British Gas customers to have their bills reduced within days

More than one million British Gas customers will see a reduction in their bills within days as the company rolls out a new government policy.

The company is implementing a plan to reduce prepayment meter charges ahead of time. British Gas said that from Saturday (April 1) its prepayment meter customers would pay the same as its direct debit customers for their gas.

They would keep the same current discount for electricity prepayment meters.

It means the average customer getting both gas and electricity from one of the supplier’s prepayment meters will be £59 better off per year.

Chris O’Shea, the boss of British Gas owner Centrica, said: “We know that more help is needed for prepayment customers and we support the Government’s decision to lower prepayment prices to the same level as direct debit customers.

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“We wanted to do more to support this group of customers by introducing this change as soon as we could so British Gas prepayment customers will benefit immediately.”

British Gas has around 1.24 million customers with prepayment meters. Around 158,000 only have electricity prepayment meters and will not benefit from the change.

British Gas is the first energy provider to make the move following an announcement made during Jeremy Hunt's spring budget earlier this month. The Chancellor said prepayment meters currently pay more than comparable customers on direct debit.

He said on March 15: “Ofgem has already agreed with suppliers a temporary suspension to forced installations of prepayment meters. But today I go further, and confirm we will bring their charges in line with comparable direct debit