Question of the week: Prepayment meters

nedski

My gf has a pre-payment meter at her rented flat and it just eats money in the winter. She's asked the rental agents if she can change it to a normal meter, and they said the landlord agrees as long as she pays £500 deposit! This is because apparently previous tenant had left without paying the bill.
I would have thought any debt run up by the tenant would be the tenant's problem these days and nothing to do with the landlord, so I think he's being unreasonable. Also I'm wondering whether the landlord should have any say in the matter at all - I think the meters were not the home owner's property but owned by the energy companies and so it wouldn't matter what he says...

catalonia13

nedski wrote: »

My gf has a pre-payment meter at her rented flat and it just eats money in the winter. She's asked the rental agents if she can change it to a normal meter, and they said the landlord agrees as long as she pays £500 deposit! This is because apparently previous tenant had left without paying the bill.
I would have thought any debt run up by the tenant would be the tenant's problem these days and nothing to do with the landlord, so I think he's being unreasonable. Also I'm wondering whether the landlord should have any say in the matter at all - I think the meters were not the home owner's property but owned by the energy companies and so it wouldn't matter what he says...

Just change supplier then (landords/agents have no hold over that!) to Ebico - www.ebico.co.uk

KimYeovil

catalonia13 wrote: »

British Gas [..] said "I can guarantee [Ebico] do have a standing charge"!!;

they don't, I knew they didn't but he wouldn't have it, wonder how many other people he is saying this to?

Technically he is right. Ebico do charge for standing costs. Their single-tier tariff is a Tier 1 tariff, not a Tier 2 tariff, so includes a (relatively small) premium for standing costs. And you could argue whilst British Gas and everyone else cap their standing charges at a pre-determined amount their is no limit to how much standing charge Ebico will levy - it is pro rata to your consumption.

(I'm not for a moment suggesting that this is unreasonable.)

catalonia13

KimYeovil wrote: »

Technically he is right. Ebico do charge for standing costs. Their single-tier tariff is a Tier 1 tariff, not a Tier 2 tariff, so includes a (relatively small) premium for standing costs. And you could argue whilst British Gas and everyone else cap their standing charges at a pre-determined amount their is no limit to how much standing charge Ebico will levy - it is pro rata to your consumption.

(I'm not for a moment suggesting that this is unreasonable.)

?? yet their site says

"Remember, whichever payment method you chose, you’ll be charged the same flat-rate tariff with no standing charge"

and their rates are one of the lowest available, can't be much of a 'premium' included!

catalonia13

Just done some quick calculations - up to 650 units used per quarter Ebico are cheaper (than British Gas), the less you use the more you save in comparison but, if you use more than 650 it starts to swing in BG's favour so for high users someone else may be better, Ebico will still be cheaper than anyone using a pre-payment meter though as all the others charge extra.

Cardew

There really does seem to be a lot of misunderstanding about pre-payment prices, and the impression given is that they are hugely more expensive.

In fact for some suppliers the prices are exactly the same, or cheaper, than the company charges for their standard tariff which the majority of customers use.

For my area the UK average customer using 20,500kWh gas and 3,300kWh electricity with BG will pay:

£1,218 pa on a standard tariff paying quarterly.

£1,140 pa on a standard tariff paying by monthly Direct Debit

£1,152 pa on pre-payment meters

Figures from energyhelpline.

Try your own figures and see the price difference between pre-pay and standard tariffs

A_fiend_for_life

catalonia13 wrote: »

Just done some quick calculations - up to 650 units used per quarter Ebico are cheaper (than British Gas), the less you use the more you save in comparison but, if you use more than 650 it starts to swing in BG's favour so for high users someone else may be better, Ebico will still be cheaper than anyone using a pre-payment meter though as all the others charge extra.

Ebico is geared towards low users.

OriginalDisco

KimYeovil wrote: »

Yes they are. You don't buy or use something unless you already have the money to pay for it.

So, answering my question you've never been in financial problems then? They tend to happen suddenly, and without a lot of warning, just so you know.

How would you have the money to pay for an electricity bill set aside until you know what your quarterly bill comes out at?

I haven't refused to pay for my energy bill, but after being made redundant I then got my quarterly bill through, which since losing my job I was unable to pay as I normally would have (there was no warning that I was going to be made redundant at the time, just went into work one day and was handed a redundancy letter...)

If that my fault?

Have I called up British Gas one day and said "You know what, I've decided not to pay for my energy usage..."?

No.

I've been – and here is the key word – UNABLE to pay, because my regular income was taken away without warning.

You seem to have a very 'black and white' attitude, whereas life is rarely so.

KimYeovil

OriginalDisco wrote: »

So, answering my question you've never been in financial problems then?

Of course I have. But I don't think other people should bail me out or pay extra for the consequences of my behaviour. If I move to a house with wallpaper I don't like I don't expect someone else to pay to change the wallpaper.

OriginalDisco wrote: »

How would you have the money to pay for an electricity bill set aside until you know what your quarterly bill comes out at?

See those metal gee-gaws in the kitchen/hallway with the number dials on them and pipes and cables coming out of? They're called 'meters'. Being poor I have never had the luxury (like you) of not needing to keep an eye on how much I am using.

OriginalDisco wrote: »

[Is] that my fault?

Not having at least three to six months of total household living expenses set aside in accessible savings is poor housekeeping and is your fault. That gives you a buffer of three to six months to adjust your behaviour and expenditure to fit your new circumstance.

OriginalDisco wrote: »

I've been – and here is the key word – UNABLE to pay, because my regular income was taken away without warning.

If it was a regular income then you have no excuses for not having savings.

OriginalDisco wrote: »

You seem to have a very 'black and white' attitude, whereas life is rarely so.

One person's 'jobsworthiness' is another person's 'treating everybody equally and fairly'.

KimYeovil

Cardew wrote: »

In fact for some suppliers the prices are exactly the same, or cheaper, than the company charges for their standard tariff which the majority of customers use.

I scratch my head, confused. You've left yourself wide open, there. When the-supplier-who-must-not-be-named-outside-their-thread makes such a shoddy guarantee you (rightly) question them!