MSE News: Call to reform pre-pay energy as 1.4 million cut off

SwanJon

undaunted wrote: »

If it's not the unemployed & low income homes just who do you think is most commonly using pre payment meters? (even Cardew & I would appear to agree on that aspect & we've not agreed on much in this thread).

If we assume that prepayment meter users are commonly unemployed & low income, it does not necessarily follow that those unemployed & on low income commonly use prepayment meters.

Kim is right that plenty of people on low incomes have chose online tariffs, plenty others have chosen DD or other payment schemes to spread the cost.
A Prepayment meter does not spread the cost, so at high use times (winter) a greater proportion of your income goes on fuel, but at lower use times (summer) you are paying less.

undaunted wrote: »

who else would choose not to put money in their meter if they could afford it?

I suppose this depends on your definition of afford. Everyone needs to decide on their own priorities. If for you Sky is more of a priority than gas, then that's ok, just don't complain about it. Same goes for cigarettes, alcohol, the internet etc.

loonatic

i had to pay 13.99 for my home topup pod off scottish power but i am in the process of switching to british gas and they say it is free if u top up within 30 days of recieving it also my electric does not go off between 5.15 at night and 9.15 in the morning and on a sunday

davidgmmafan

Very interesting discussion this, somewhat heated but hey that's what happens on controversial issues.

I honestly believe there IS an additional cost to prepayment meters but have no special insight into this.

One thing I DO notice in billing is that the older generation are generally very worried if a bill hasn't been paid (whether it is thier fault or not) and yet many young people, who are clearly struggling, often ask the question what am I supposed to do? I only get X amount and its not enough. Obviously I can't say that my friend is your problem, but it is an interesting contrast. Clearly I'm generalizing here, but this is what I've found based on experience.

An OAP's frequent question, if there is a balance, is will I get cut off?

I know what its like to struggle myself and generally am on the side of the most vulnerable, but equally there are people who are taking the pee. We all know the accepted wisdom that power companies are there to screw us/make money (depends on your perspective) but this is true of any business. It is our job, nay responsibility, as consumers to make as difficult as possible for them.

I can well understand some landlords insisting on prepayment meters as it is an effective way of avoiding bills being run up by unscrupulous tenants.

Some people find prepayment meters better for them in the sense that it shows what they use in pounds and pence. I think this is why the myth that prepayment costs more persists (apart from one or two suppliers they are the same as standard). If a customer goes onto DD they lose this link and therefore may use more or find it more difficult to keep an eye on thier usage.

I say an article one trying to suggest that companies are penalizing people for not paying by direct debit but I think this is a nothing argument. Virgin Media and others charges customers a fee for NOT paying by direct debit, this IMO is a scandal and totally different to giving an incentive to do something.

Someone on here, I think it was Premier, said they don't like to be in credit and choose not to pay by DD. Peersonally I prefer to consciously overpay since I'd be getting !!!!!! all in the bank and like to have a buffer.

PS the comments relating to economy 7 and someone owning something which makes a difference to the price is utter rubbish. There IS something of this nature to do with gas. FYI as a rule of thumb if you use less than 30% of your electricity on the night rate then E7 isn't working for you.