Prepayment meters, good or bad?

Maz

Joyful wrote: »

If she goes into emergency credit it will not take the daily charge so will take that when she next tops up. I would also check that she is only paying for her property.

So if she goes into emergency credit of £5 she gets £5 worth of energy to use. Then when she next tops up, say, £30 the £5 plus a charge will be deducted from the £30? Have I got that right?

Will ask her to check if she's only paying for her own usage, does seem a lot for her property size and occupancy!

cally6008

Maz - ask friend to switch everything possible OFF and take a meter reading, if meters are still flying round then its quite possible that she's paying for someone's else electric

sheffield_lad

cally6008 wrote: »

Maz - ask friend to switch everything possible OFF and take a meter reading, if meters are still flying round then its quite possible that she's paying for someone's else electric

Although to caveat the above this happens rarely. I would check if any electric heating is used or an immersion. This is what really eats electric.


GL

Nafi

I read all the comments.


So the price and inconvenience are the main disadvantages of the PP, right?

Have you ever thought about the potential advantages of the PP, if many start using it? I think it gives bargaining power to the consumer and here is why kept as the last and worst option for us deliberately... Going to the nearest top-up station, really? in the age of smart phones? What standing charge if there is minimal operation cost?

I am researching the impact of Prepayment method in consumer behaviour and energy consumption. Please spare 2 minutes of your time.


surveygizmo.com/s3/1803625/Msc-Survey-City-University



I think this and future researches on this topic will challenge the way energy companies are working and benefit the consumers while reducing our carbon emissions.

[Deleted User]

Here is another big plus factor for "smart " prepays to be implemented as quickly as possible with no refusals allowed. The main reason prepays are are so expensive is the appalling cost of managing them and suppliers pay untold millions. I and all my colleagues all have to take turns covering all hours, weekends up to 8 pm running around in expensive cars using petrol like its water just endlessly topping up credit meters or sorting out lost or faulty cards. My colleague has been out (driving 50 miles at a time) 4 times in the last month to one house to put emergency credit on their prepay. Its costing the suppliers a fortune to run these antiquated things. Smart prepays will end all that guff and the costs should come right down to reflect this and there should be no reason then why prepays cannot go on the cheapest fixed deals. The M.P. Margaret Hodge has quoted why smarts should not be made mandatory to protect vulnerable customers. So keeping the status quo with key/cards from the last century is protecting them is it ?

Nafi

Thank you for the insider view.


Indeed, what you have described, sounds like a waste of human and non-human resources, while some upgrading of the system can do the half, if not all of the work.

From your experience, can you tell human beings act more responsibly, when they can see the money they just had topped up is reducing more quickly, with the light still on in that room, the tv is on the standby and etc?

sacsquacco wrote: »

Here is another big plus factor for "smart " prepays to be implemented as quickly as possible with no refusals allowed. The main reason prepays are are so expensive is the appalling cost of managing them and suppliers pay untold millions. I and all my colleagues all have to take turns covering all hours, weekends up to 8 pm running around in expensive cars using petrol like its water just endlessly topping up credit meters or sorting out lost or faulty cards. My colleague has been out (driving 50 miles at a time) 4 times in the last month to one house to put emergency credit on their prepay. Its costing the suppliers a fortune to run these antiquated things. Smart prepays will end all that guff and the costs should come right down to reflect this and there should be no reason then why prepays cannot go on the cheapest fixed deals. The M.P. Margaret Hodge has quoted why smarts should not be made mandatory to protect vulnerable customers. So keeping the status quo with key/cards from the last century is protecting them is it ?

[Deleted User]

Yes Nafi, its a huge waste of resource all the costs associated with running these ancient old cards/keys. A few years back prepays were even more expensive than they are now , fixed to "standard/variable" tariffs . I think that the much higher tariffs they were on reflected the true costs of running them and are now being subsidised by credit meters just to bring them down to an acceptable level. Smart prepays are begging to be implemented for every prepay as soon as possible. The costs for managing them must rocket down.All meter readers know about the endless expensive trips out at all hours dealing with card probs, decommissioning and recommissioning the meters. Its as antiquated as an ox-cart.
There will be many objectors to smart prepays, they are easily the most tampered and bypassed meters, maybe 9 out of 10 sort of level, the smarts will make the easy ride of bunging a link in ( inside the meter ) for free energy so much harder. If its run correctly, smart meter technology will make it better for all. Credit meters will stop subsidising prepays for a start

Nafi

Honestly, I didn't know about these operational costs, being on quarterly postpayment since I started paying my own bills. I thought, since there are no meter readings and paperwork, this should be a lot lower in operational cost.


But if there are such costs, it is not the consumers' fault. And like you said, neither the prepayment nor the postpayment consumer should be penalised because the energy companies still use the antique system.


And how these smart meters will effect the unit price and the standing charge? any predictions?

Thinking from economic perspective, companies would rather lock you in long contracts and quarterly payments. And competitively priced PPM has many advantages, except some disadvantages for the energy provider, imho.

[Deleted User]

Cant predict anything but market forces will rule and prepays will join the club in being on cheaper tariffs because their meters wont be a hindrance and cost to the supplier like they are now. I doubt if a figure can be conjured up as to the cost of running the present day prepays, all the trips to the shop, ( where the middleman will take a cut ) will be history with smart prepays. BG and a couple of other of the big 6 do run a dongle system for online top ups but non of the cheaper smaller ones do. So far smart prepays seem to be at the back of the queue for installation. BG have been installing smarts for close to 7 years now and so far I havent seen a smart prepay in operation. In my view, they should have been the first ones if only for their anti tamper benefits.
Yesterday I viewed a Commons Committee document , where Margaret Hodge M.P. was outlining why no one can force a prepay on anyone because its making the vulnerable and less advantaged possibly pay more with a smart meter. I think the smart prepays will end up paying a lot less than they do now and EDF agree with me saying a smart metered UK will save £1.24 billion a year. Thats a lot less coal and gas being burnt per year along with all the exhaust fumes of meter readers cars buzzing about the UK topping up prepays all day and night.

lstar337

sacsquacco, in our old flat we had a prepay that was fitted over 6 feet up. When EDF found out they rang to tell us we were no longer allowed to top up as it would break health and safety regulations.

They told us that until they could send somebody out to relocate the meter, we had to ring them when we wanted a top up and they would send a bloke around to put the key in for us! Talk about a waste of man power!

Needless to say I ignored them and continued to top up myself.

Oh, and a man came to look at relocating the meter, said it should be an easy job and never returned. Over six months later we moved out and the meter was the same as when we moved in!