What should the unit prices be to cover wholesale prices?

Sea_Shell

I've just been reading some comments on a post by ML on FB.

It seems a growing number are saying they're just going to cancel their DDs in either protest or because they just can't afford the increases.

This could get very messy!!!

What would the consequences be of that, in the short and medium term, for both customers and the suppliers.

No one's going to get immediately cut off are they...it's a process to chase a debt.

PennineAcute

Sea_Shell said:

I've just been reading some comments on a post by ML on FB.

It seems a growing number are saying they're just going to cancel their DDs in either protest or because they just can't afford the increases.

This could get very messy!!!

What would the consequences be of that, in the short and medium term, for both customers and the suppliers.

No one's going to get immediately cut off are they...it's a process to chase a debt.

A lot of people going onto prepay then.  Which, ironically, is more than the month DD cap.

I'm going to struggle.  Fixed now so I can get a reasonable instead of an obscene tariff.  My monthly payments have gone up by around 60% from when I was with Zog and Symbio, but I have been, was until they both went bust, with the cheap companies.  I cannot really compromise any more an reduce my usage.  My two fish tanks are my main usage, but the electricity cost is comparable to feeding a pet dog.

Sea_Shell

So how long (and what is the process) to move a customer onto a pre-pay meter, if they've failed to pay their bill after X months?

PennineAcute

A friend of mine was moved onto prepay meters in 2014, after numerous promises to pay and 10 missed payments.. The debt was added to the meter.

My neighbour last paid his DD in Feb last year.  As yet, British Gas have not done anything but produce statements each month.

Spies

If you're on a smart meter can't they just flick a switch and turn it into prepay? I don't think cancelling DDs is going to help anyone. 

Sea_Shell

Spies said:

If you're on a smart meter can't they just flick a switch and turn it into prepay? I don't think cancelling DDs is going to help anyone. 

When do they actually cut any one off though??    I thought it was strange that you still appear to be able to rack up debt on a pre-pay meter (from what I've read on the debt pages here), the lights don't just go out! (or do they?)

I think there are going to be a lot of people for whom these higher bills are going to be the last straw to drag them under, and if they already have other debt, they're not going to worry about trashing their credit score etc. 

They'll pay their Council tax, and their rent and above that...go fish!!

There may also be those that treat it as a protest, in that they CAN afford it, but want to make a statement, so may cancel their DD for a month or two, whilst keeping the money aside and hang out paying it back for as long as possible.   People have done dafter things than that for a "cause".

QrizB

Sea_Shell said:

Spies said:

If you're on a smart meter can't they just flick a switch and turn it into prepay? I don't think cancelling DDs is going to help anyone. 

When do they actually cut any one off though??    I thought it was strange that you still appear to be able to rack up debt on a pre-pay meter (from what I've read on the debt pages here), the lights don't just go out! (or do they?)

Somebody posted some stats a few months back, saying there had been no disconnections for poor payment in the previous year and a single-digit number in the previous decade (I am working from memory and can't find the post so I may not be 100% on the details).

By putting meters onto prepay the supplier avoids the cost and hassle of a court order and the customer gets to self-disconnect instead if they don't pay.

I've never had a prepayment meter (my gran had a coin-operated one ages ago) but I think that a certain proportion of every top-up goes towards paying your arrears, eg. from a £10 top-up you might lose £5 immediately towards your arrears and only get £5 worth of energy.

Spies

If pre-pay meters don't cut you off, then whats their purpose?

I'm sure I remember tales from my grandparents having to put money in the meter to get the leccy back on.

Edit: I'm sure I've read people posting in this very forum about being cut off?

QrizB

Spies said:

If pre-pay meters don't cut you off, then whats their purpose?
I'm sure I remember tales from my grandparents having to put money in the meter to get the leccy back on.
Edit: I'm sure I've read people posting in this very forum about being cut off?

I'm not sure who you're replying to, specifically. Maybe it's semantics.

To disconnect a customer, a supplier needs to go to court.

When your prepay credit runs out, the energy stops. That isn't disconnection.

MWT

Spies said:

If pre-pay meters don't cut you off, then whats their purpose?

They do stop the supply, but people can still manage to build up debt as the standing charges continue even if the meter is not topped up, so when the meter is next topped up a good proportion of that payment is taken to cover standing charges but there is a limit to prevent the money from being 'lost' that way, which means that if people never fully clear the standing charges and use of the 'emergency' credit option, they can still, over time, build up a debt.

Also when people end up forced onto the Pre-Pay meter there can be an amount of debt added to  the meter and recovered from the top-ups, so in the same way as I've already mentioned, if the top-ups are not sufficient to cover the standing charges, the debt and the emergency credit use, the customer can still have debt to pay and be on pre-pay.