WIRRAL Euro MP Paul Nuttall is backing plans for an inquiry into pre-payment energy meters being forcibly installed in people’s homes.

And he is demanding power companies end the practice of charging more for gas and electricity for households using the pay-as-you-go devices.

Watchdog Ofgem has pledged to investigate the imposition of pre-payment meters by court order for those who have run up debts.

The move came after it was revealed 97,000 pre-pay gas and electricity meters were installed in England, Wales and Scotland last year alone.

Ofgem, which supplied the figures in response to a freedom of information request from BBC Radio 5 Live, said it is "looking into reasons behind the increase" and added that installing pre-payment meters under warrant should be used as a "last resort".

Government figures show households in Merseyside have the highest proportion of pre-payment meters in the country.

“I am glad that the energy watchdog is looking into this practice but I would like them to also press for the higher charge levied on pre-payment customers to be dropped,” said Mr Nuttall.

“Why should those who pay in advance for their gas and electricity have to pay an average of £80 a year more than direct debit customers?

“More than one-in-five households in Merseyside uses a pre-payment meter for gas, and almost a quarter have one for electricity.

“Those with pre-payment meters are generally the least able in society to meet their bills and yet they are penalised with higher charges. I would like Ofgem to press for this unfair discrimination to be stopped.”

Mr Nuttall, UKIP deputy leader, pointed out: "Pre-payment meter customers are unable to benefit from competitive better deals and are at a permanent disadvantage.

"People struggling with debts need help - not an extra financial burden."

An Ofgem spokesman said: "Installing pre-payment meters under warrant should be used as a last resort by energy suppliers when consumers get into debt.

"It is a way to prevent a customer from being disconnected. Suppliers can only install a prepayment meter where it is safe and reasonably practical for the consumer to use."

Energy UK, a trade association for the energy industry, also described the devices as a "last resort" but said they can help people with managing their budget.

A spokesman said: "Suppliers only install pre-payment meters at warrant as a last resort to help customers manage their debt.

"Pre-payment meters can help customers manage their budget where paying on a monthly or quarterly basis is not suitable for them."

Gillian Guy, chief executive of Citizens Advice, said: "Prepay customers have been getting a raw deal for too long.

"They face a limited number of tariffs and pay on average £80 more a year on their energy bills than direct debit customers.

"Topping up can be difficult, with customers only able to top up in store instead of being able to add money to their meter online or over the phone."