MSE News Story: Millions of prepay energy consumers overcharged

SwanJon

1carminestocky wrote: »

1. SJ, your company (and the others) give a discount for people paying 12 times per year instead of 4! Why is that, I wonder?

Aha, the old bait and switch.
You are, I assume, referring to payments made by direct debit, not at the post office at all, so not comparing like with like (you been spending too much time with UW's TVG?).

No Game.

newlywed

adprob wrote: »

How does that compare to the standing charge on their credit meter tariff?

One of their credit options has no standing charge at all - one is £57 a year. Hmmm.

In three years we've never lost a card, and only once had to call them out and that was the battery run down on the meter so it didn't work - hardly my fault and was only a 5 minute job to fix.

At least I know the electricity supplier doesn't charge extra for prepay - but you don't get the direct debit discount, that's their only difference.

stewie_griffin

newlywed wrote: »

One of their credit options has no standing charge at all - one is £57 a year. Hmmm.

In three years we've never lost a card, and only once had to call them out and that was the battery run down on the meter so it didn't work - hardly my fault and was only a 5 minute job to fix.

At least I know the electricity supplier doesn't charge extra for prepay - but you don't get the direct debit discount, that's their only difference.

A lot of tariffs for credit meters state there is no standing charge but they are hidden in 2 tier pricing systems.

1carminestocky

SwanJon wrote: »

Aha, the old bait and switch.
You are, I assume, referring to payments made by direct debit, not at the post office at all, so not comparing like with like (you been spending too much time with UW's TVG?).

No Game.

Does a Post Office payment take more than 3 times as much to process as a direct debit? I think part of the discount is due to the punter NOT paying several months in arrears, TBH. Pre-payment punters, of course, actually pay IN ADVANCE.

And whilst we are 'dig' mode, maybe you've been attending too many BG 'training' courses?

1carminestocky

stewie_griffin wrote: »

A lot of tariffs for credit meters state there is no standing charge but they are hidden in 2 tier pricing systems.

I agree, it would be very helpful if we could get all the figures here and see how much more newlywed is paying.

SwanJon

1carminestocky wrote: »

whilst we are 'dig' mode, maybe you've been attending too many BG 'training' courses?

Struck a nerve? why the quotes around training?

1carminestocky wrote: »

Does a Post Office payment take more than 3 times as much to process as a direct debit?

Hmm, don't have the figures, but comparing a wholy automated electronic transaction with one that adds human interaction and another layer or two of electronic transfers, I think it is very likely that it costs at least 3 times more.
I'm not denying that some of the benefits for the company of customers paying by DD is reliability and frequency of payment, but there are plenty of examples out there where DD customers are not paying in advance and a debt is built up.

So, have we exhausted all comparisons of cost of payment differentials between prepayment and quarterly (and even with your bait and switch DD)?
Just have cost of payment device, meter rental, meter maintainance etc to go....

1carminestocky

I'm entirely happy for the thread to progress in that very vein. Carry on...

SwanJon

OK, payment devices.
Preppayment meters need one, quarterly etc don't and are there for are infinty% more expensive.

PS did you spot the sweeping generalistaion?

1carminestocky

SwanJon wrote: »

OK, payment devices.
Preppayment meters need one, quarterly etc don't and are there for are infinty% more expensive.

PS did you spot the sweeping generalistaion?

Was it 'OK'?

georgina_fenwick

I have prepayment meters for both gas and electric, had them for more than 15 years. In all that time I have only needed an engineer once and that was to change the battery in the gas meter, something I would gladly do myself if able.

Hell would have to freeze over before I would have them taken out.

I would never go back to getting bills in, I like to know that I can only use what I have paid for.

And I think it's disgraceful that they charge prepayment meter customers so much more than credit customers, when we hand over our money BEFORE we even use any gas or electric.

I think the energy companies see it as people on pre payment meters have no choice but to have them as most get them installed when they have a high bill, so why not squeeze as much out of them as possible.

If we have been overcharged it would be only fair that the energy companies give us some of our money back, even if they say it's a goodwill gesture of £20 credit when you top up.

But hey ho, I'm only one person, and this is just my opinion.