Prepayment Meter Robbery

Sock_2

I have been on a gas and electricity prepayment meter for the past twelve years and moved house at the end of June.
I closed my account the day before I left and Powergen confirmed on the phone that all was satisfactory and that I owed them nothing.
Three months later Powergen contacted me to inform me that they were taking me to Court within seven days as I was £400 in arrears.
I was shocked and immediately contacted them where I was told that prepayment meters sometimes showed a debit but this was nothing to worry about as this was a common occurrence. I was then told that my account was fully paid up, nothing further would happen and I would receive a zero - balance confirmation by return of post.
I heard nothing.
Eight days later the debt collection agency contacted me and they were clearly in the process of taking me to Court.
On speaking to Powergen this time they had clearly changed their story.
‘Meter charges had gone up in 2004 and there was an error for 2,000 meters nationwide , but although we had made an error and even though we did not inform our customers of this rise, the regulator nevertheless gave his consent so that we can charge them’
In the twelve years of meter use I have never been told that I had underpaid. The point of using the meter was to help me budget and pay the bills when I could afford them.
In March 2007, I was however, notified by Powergen that an increase was to take place but I should do nothing as the meters would rectify themselves and charge according to the increase.
How can they legally take me to Court when they have already made it clear that I owed them nothing and when they have never previously informed me that I was underpaying? Yet three months after I have left the property I am being summoned to Court. Surely this can't be legal!
Advice would be much appreciated.

Cardew

Welcome to the forum.

My understanding is that Powergen are within their rights legally, but IMO not morally.

It is a common misconception that with pre-payment meters you are paying in advance for all your gas & electricity. You are in fact committed to pay the going rate for the tariff you are on, and you can build up a debit balance, usually when prices are rising. Indeed when prices are falling you can build up a credit balance.


Had you stayed in your house the meter would have been set to cover the current cost and recover the debt(as you were told in Mar 2007) You clearly moved before the debt was cleared.

There was a lot of concern expressed about this situation by several MPs and the matter got a lot of publicity. Generally people on pre-payment meters are not the most affluent and the pre-payment tariffs usually have the highest prices, so this situation hits the people who can least afford to pay.

Some companies, including the much maligned British Gas, decided to write off any debts built up in this manner; but Powergen were not one of these companies.

You certainly shouldn't have had the matter passed to debt collection agencies without giving you plenty of warning in writing.


You might be better to contact Energywatch and see if they will negotiate on your behalf. Given the circumstances, they might be able to get a big reduction in the £400 you owe, if you agree to pay off the rest; and they should be able to get the Debt collection agency action stopped.

taxi97w

I was in a similar situation.

Here is the story and the positive outcome.

http://forums.moneysavingexpert.com/showthread.html?t=344285&highlight=npower

Good luck to you.:beer:

Cardew

taxi97w wrote: »

I was in a similar situation.

Here is the story and the positive outcome.

http://forums.moneysavingexpert.com/showthread.html?t=344285&highlight=npower

Good luck to you.:beer:

Likewise I wish the OP luck.

However I don't believe things are as clear cut as that thread indicates.

This is a quote from the previous thread.

It's their responsibility to make sure they organise access and change your meter to reflect any change in tariffs, otherwise they have to forfeit the difference.

That of course might be true; but the principle is established that the debit balance, built up by the meter being set too low, is liable to be paid by the consumer.

As I understand it from the OP's post he moved before this debt had been recovered.

As I said in my earlier post there have been thousands of cases where companies have insisted on debts incurred in this manner being paid. However the bad publicity has shamed some companies into writing off that debt - but others have not done so..

This thread - particularly the posts by tripled, who is a Utility Company employee and knows what he is palking about, confirm the position.

http://forums.moneysavingexpert.com/showthread.html?t=490381&highlight=Powergen+are+-one

taxi97w

Cardew wrote: »

Likewise I wish the OP luck.

However I don't believe things are as clear cut as that thread indicates.

This is a quote from the previous thread.



That of course might be true; but the principle is established that the debit balance, built up by the meter being set too low, is liable to be paid by the consumer.

As I understand it from the OP's post he moved before this debt had been recovered.

As I said in my earlier post there have been thousands of cases where companies have insisted on debts incurred in this manner being paid. However the bad publicity has shamed some companies into writing off that debt - but others have not done so..

This thread - particularly the posts by tripled, who is a Utility Company employee and knows what he is palking about, confirm the position.

http://forums.moneysavingexpert.com/showthread.html?t=490381&highlight=Powergen+are+-one

Accidentally pressed thanks.

Everything about my case is true. What I wrote is what happened, and I know what I am talking about.
Who are you to deny that?
You can go jump, and take your negativity with you.

Cardew

taxi97w wrote: »

Accidentally pressed thanks.

Everything about my case is true. What I wrote is what happened, and I know what I am talking about.
Who are you to deny that?
You can go jump, and take your negativity with you.

Thank you for your 'thanks' - rather like your post it appears you acted without much thought!

You most certainly do not know what you are talking about, or cannot comprehend what you have read in this thread.

For a start it has never has been been illegal, and still is not illegal for companies to claim back debts built up by their failure to change meter settings.

Secondly it might have escaped your notice that the OP was with Powergen and you were with NPower. I did not pass comment on your dealings with Energywatch, merely that whatever your problem was, it did not cover the OP's situation.

Perhaps you might like to read the latest recently updated Energwatch extract from their website that deals specifically with "backbilling on prepayment meters"

http://www.energywatch.org.uk/your_questions/index.asp

If you read it carefully(not your strong point?)

You will see that after representations by Energywatch, Powergen have agreed that "Recovery Charges will be at a low rate"

Note: that does not mean that the charges are illegal as you imply.

As I suggested in the last paragraph of Post #2 the OP should contact Energy watch as it would appear that Powergen have not complied with the Guidelines.

Now perhaps you can apply your 'logic' and tell me where anything I have written in the thread is incorrect.

taxi97w

Firstly, this is where you are incorrect:-

cardew wrote:

However I don't believe things are as clear cut as that thread indicates.

It couldn't have been clearer

Secondly:-

cardew wrote:

Secondly it might have escaped your notice that the OP was with Powergen and you were with NPower. I did not pass comment on your dealings with Energywatch, merely that whatever your problem was, it did not cover the OP's situation.

You are not as pedantic as you first appear because you didn't pick up on this:-

taxi97w wrote:

I was in a similar situation.

Thirdly, I can't be bothered justifying myself to you.

Bye

ukbill69

I just had the same thing, moved into a house with powergen and pre-payment card on econ 10 and I didnt use the boost in the afternoon, so they converted mine to econ 7 with a key and found my electric was double that it was on old card meter, anyways called powergen and they said mine hadnt been changed in 10 years thats why the cost differance. Surly if they know it hasnt been changed they should write to the customer, or make it so you have to put in a key that update prices then at least the power company wouldnt have to come out all the time.