Why do people have pre payment electric and gas ?

property.advert

I remember donkeys years ago having some coin meter for the electric in a house I rented as a student (we busted it and had it removed !) but why do people have them in 2010 ?

It costs much more than direct debit and they give anyone an account from which you can set up direct debits.

As well as the unnecessary cost, there seem to be many problems, not least the lady in another thread who has lost her card or something and will have no gas for 5 day !

Why do that ?

I_luv_cats

I have pre-payment to help budgeting.
I am with Ebico and they have no tiers / standing charge which helps a low user to cut costs.

Others may have pre-pay because they owe money to their energy company or don't have the facility or want direct debits.

People mostly pay their money and take their choice!

Cardew

Many have no option, they have a poor credit record and companies refuse to give them credit meters, which grants them, potentially, credit of several hundred pounds.

Some have credit meters removed by the company, and pre-pay installed, for that reason - some by court order.

Even for people with good credit records, some companies require payment to change meters.

JasX

property.advert wrote: »

Why do that ?

They're basically put in for financial delinquients who never have enough money in their bank account to pay their direct debits....

or people unfortunate enough to move into a property previously occupied by said delinquients who;ve not yet been able to get the meter replaced with a normal one again

Ken68

I should imagine that the energy companies would prefer instant payment from everyone. Saves cashflow problems and credit disputes.
Maybe eventually Smart metering will be incorporated in with credit or debit card instant payments.

Cardew

Ken68 wrote: »

I should imagine that the energy companies would prefer instant payment from everyone. Saves cashflow problems and credit disputes.
Maybe eventually Smart metering will be incorporated in with credit or debit card instant payments.

The bosses of all the Energy companies gave evidence to the Parliamentary Energy Committee and all stated that the cost to administer pre-pay schemes cost more than they charged customers.

Since giving that evidence, under political pressure - as pre-pay customers are generally the less well off in society - they have reduced pre-pay tariffs.

Premier_2

property.advert wrote: »

...It costs much more than direct debit and they give anyone an account from which you can set up direct debits....

Believe it or not, not everyone in this country has a bank account, let alone one that allows them to set up Direct Debits on.

Even for those who do have such a bank account, many who set up Direct Debits appear to end up mishandling their bank account and any possible savings provided by the energy supplier are more than wiped out by the charges the banks end up imposing on them.

Some people have PPMs because perhaps they prefer them to help with budgetting, whilst others have them forced upon them perhaps because they have previously fallen behind with their payments or because they have moved to a property where they are already fitted.
(Credit meters are only supplied to those who the supplier wishes to extend cedit to)

spinningsheep

JasX, how nasty is that comment. "financial delinquents". Why not just say financial lepers and have done with it! I presume you are someone who has never had a financial problem and solvent so you never have to worry about a minor thing as a debt to a utility supplier. Many people are a victim of circumstance, they certainly would not choose to be in the situation they are in, and miss out on the discounts offered by suppliers on their cheapest credit meter deals. You make it sound as though anyone with a prepaid meter through a debt that prevents them being allowed a credit meter deserves it because they have a less than perfect credit score. If you haven't already, I sincerely hope you do get faced with a financial mess not of your own making and see how you enjoy joining the "financial delinquent" club!:(

Premier_2

spinningsheep wrote: »

JasX, how nasty is that comment. "financial delinquents". ...

English
Noun

Singular
delinquency
Plural
delinquencies

delinquency (plural delinquencies)
....
3. a debt that is overdue for payment

http://en.wiktionary.org/wiki/delinquency

DELINQUENT ACCOUNT
A borrower (account) with one or more installment payments past due. ....

http://www.autoapproved.com/t/credit.aspx

Delinquent definition
A term describing the failure to meet required obligations according to schedule.

http://dictionary.reference.com/browse/delinquent

Seems to be the appropriate term. People need to understand and accept a problem before they can have any hope of dealing with it.

jackieblack

I can see why spinningsheep was upset.




delinquent
/dilingkwnt/

• adjective 1 (especially of young people) tending to commit crime. 2 [SIZE=-1]formal[/SIZE] failing in one’s duty. 3 [SIZE=-1]chiefly N. Amer.[/SIZE] in arrears.

• noun a delinquent person. [SIZE=-1]— DERIVATIVES[/SIZE] delinquently [SIZE=-1]adverb[/SIZE]. [SIZE=-1]— ORIGIN[/SIZE] from Latin delinquere ‘to offend’.

KimYeovil

spinningsheep wrote: »

JasX, how nasty is that comment. "financial delinquents". Why not just say financial lepers and have done with it! I presume you are someone who has never had a financial problem and solvent so you never have to worry about a minor thing as a debt to a utility supplier. Many people are a victim of circumstance, they certainly would not choose to be in the situation they are in, and miss out on the discounts offered by suppliers on their cheapest credit meter deals. You make it sound as though anyone with a prepaid meter through a debt that prevents them being allowed a credit meter deserves it because they have a less than perfect credit score. If you haven't already, I sincerely hope you do get faced with a financial mess not of your own making and see how you enjoy joining the "financial delinquent" club!:(

Utter shyyte. 99% of delinquents are delinquents by their own deliberations, they are not 'misunderstood'. Keep yer special pleading for gullible Krupkes.