MSE News: Ofgem wants fees scrapped for prepaid energy meters

Cardew

C_Mababejive wrote: »

I think OFGEM are just showboating unless they are advocating that credit customers cross subsidise prepayment customers by smearing prepayment administration costs across everyone elses bills?

That is indeed what is happening.


Some years ago, when pre-pay tariffs were considerably more expensive than Standard tariffs, the bosses of the Big 6 appeared before the Parliamentary Energy Committee and gave evidence that the differential did not cover the additional costs of administering the pre-pay scheme.


However as pre-pay meters are largely used by the less well off, some months later political pressure was applied to the companies and the differential was reduced by means of a larger cross-subsidy.

Cardew

Joyful wrote: »

I came across this today. After seeimg Cardew's post I was surprised to see a couple of the big 6 on the list. http://www.bbc.co.uk/news/business-33369672

See post #9

misterbarlow

there never used to be a charge at all a few years ago, and there is often no charge for installing them to start with, or changing credit meters due to age, or changing meter if you change tariff, its often only done to remove a PPM, to try and break the in/out cycle..

There were many customers who dont pay for months and months, so have a PPM put in, pay off the bill, then they have it taken out again, then run up another bill, have a PPM again, pay it off again, have it taken out again... some people lived on this cycle, so they started charging for removal..

most suppliers also often don't charge if a new tenant moves into a property and inherits a PPM, they often don't charge landlords to remove them after a CoT, the charge is mainly to break the in/out cycle of these yoyo customers...

by charging for PPM removal it makes them think twice about not paying the bill and having to have one put in again...

[Deleted User]

misterbarlow wrote: »

there never used to be a charge at all a few years ago, and there is often no charge for installing them to start with, or changing credit meters due to age, or changing meter if you change tariff, its often only done to remove a PPM, to try and break the in/out cycle..

There were many customers who dont pay for months and months, so have a PPM put in, pay off the bill, then they have it taken out again, then run up another bill, have a PPM again, pay it off again, have it taken out again... some people lived on this cycle, so they started charging for removal..
most suppliers also often don't charge if a new tenant moves into a property and inherits a PPM, they often don't charge landlords to remove them after a CoT, the charge is mainly to break the in/out cycle of these yoyo customers...

by charging for PPM removal it makes them think twice about not paying the bill and having to have one put in again...

At £215 a meter, Scottish Powers price it certainly does make them think twice.My advice was to try cust services again as they seem to have variable rates or switch to either BG or EDF who I know have often switched the prepays free or £60 per meter.The two couples were both happy to pay £60 a meter

misterbarlow

some suppliers don't have a MOP in every area of the country and sometimes have to sub the job to a local one, it could be them charging silly amounts to the supplier who then pass it on with admin fees etc...

[Deleted User]

misterbarlow wrote: »

some suppliers don't have a MOP in every area of the country and sometimes have to sub the job to a local one, it could be them charging silly amounts to the supplier who then pass it on with admin fees etc...

Its just Scottish Power with their usual appalling service.They are in the Northern Powergrid area. One of the couples ended up making a separate complaint about the cust service call centre staff who , she says, was downright rude.She received a standard apology letter. £215 per meter is too much even if a sub contractor is involved.