MSE News: Prepay for your energy? You could keep today's cheaper rates for a little longer

Rockersandrew

So it would seem we have a range of outcomes depending on a range of scenarios.

I suspect there is something in the small print that say we have to submit accurate readings anyway as part of the contract.

GingerTim

Rockersandrew said:

So it would seem we have a range of outcomes depending on a range of scenarios.

I suspect there is something in the small print that say we have to submit accurate readings anyway as part of the contract.

Only a range of scenarios in the sense that one is fraudulent behaviour, the other isn't.

Rather more important is the small print of the Fraud Act of 2006 which would supersede any  company Ts&Cs: https://www.legislation.gov.uk/ukpga/2006/35/section/2

2Fraud by false representation

(1)A person is in breach of this section if he—

(a)dishonestly makes a false representation, and

(b)intends, by making the representation—

(i)to make a gain for himself or another, or

(ii)to cause loss to another or to expose another to a risk of loss.

(2)A representation is false if—

(a)it is untrue or misleading, and

(b)the person making it knows that it is, or might be, untrue or misleading.

(3)“Representation” means any representation as to fact or law, including a representation as to the state of mind of—

(a)the person making the representation, or

(b)any other person.

(4)A representation may be express or implied.

(5)For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).

Rockersandrew

Thanks. I finally found a thread from 2008 (pre-smart Meters I think) where the same query was raised. 
I am sure the system would be clever enough to spot an anomaly and override with a more realistic estimated reading.
Deliberately Overstating your meter reading — MoneySavingExpert Forum

GingerTim

Yes, that's the other thing - the energy companies might be daft, but aren't stupid. They'll eventually pick up any attempt to fiddle the readings.

Mabjohn

However, the vast majority of the electricity increase is in the daily standing charge. I suppose that the suppliers will be applying the new standing charge from 1 April, therefore diminishing the benefits of pre-buying. 

My standing charge with Ecotricity is increasing from 29p per day to 53p. But the unit charge is 'only' increasing from 20p to 28p. From 1 April, I suppose they'll be debiting 53p per day, regardless of the credit I've preloaded on the meter as per MSE advice. The only benefit I'll have is that I've pre-bought at 20p rather than 28p for the unit charge.
  
It makes more sense with gas, where the standing charge is only increasing from 35p to 37p but the unit charge is increasing from 4.1p to 7.3p. 

Yet to confirm this with Ecotricity, by the way. 

Maybe someone from MSE could confirm this in principle. 

QrizB

Mabjohn said:

However, the vast majority of the electricity increase is in the daily standing charge.

That is only true if you are a very low user.

• The total increase in standing charge is around £75.
• For an average user, the increase due to the unit rate is around £200.

You would need to use less than 1000kWh/yr for the standing charge increase to be more than the unit rate increase.

Mobtr

Mabjohn said:

However, the vast majority of the electricity increase is in the daily standing charge. I suppose that the suppliers will be applying the new standing charge from 1 April, therefore diminishing the benefits of pre-buying. 

My standing charge with Ecotricity is increasing from 29p per day to 53p. But the unit charge is 'only' increasing from 20p to 28p. From 1 April, I suppose they'll be debiting 53p per day, regardless of the credit I've preloaded on the meter as per MSE advice. The only benefit I'll have is that I've pre-bought at 20p rather than 28p for the unit charge.
  
It makes more sense with gas, where the standing charge is only increasing from 35p to 37p but the unit charge is increasing from 4.1p to 7.3p. 

Yet to confirm this with Ecotricity, by the way. 

Maybe someone from MSE could confirm this in principle. 

If you have an old style prepayment meter the new prices AND standing charge will only update once you have topped up your key/card after 1st April. If you have smart PAYG meters, they will be updated automatically on 1st April 

PC2016

I am with Bulb - I have to raise concerns with this notion of pre loading your prepay meter. I normally bulk buy in the summer months to increase my cash flow during the winter months and although this could by classed as anecdotal as my memory is a tad fuzzy on which energy firm I was with at the time [however not Scottish].

But I once vaguely recall topping up vast amounts to beat a massive price increase using this method, only to find that when the time came to actually top-up my meter with the new tariff I was "back" charged and a huge sum of my top up was removed as "debt" forcing me to return to the shop and top up even more. Luckily I was debt free and newly anointed with fiscal sense to shoulder the burden. I fear if this was to happen, many wouldn't be the same position. This is untested and uncharted waters, I will however be testing with an extra £50 and if I remember will add my findings accordingly.       

Jerry_Cornelius

Hope someone from MSE can confirm the idea of topping up your old prepayment meter before 1st April to offset against the new rates for a while is a valid one. I'm an Eon customer, with i believe a non-smart prepayment meter and I have the potential to top it up to the max in the next few weeks.

QrizB

Jerry_Cornelius said:

Hope someone from MSE can confirm the idea of topping up your old prepayment meter before 1st April to offset against the new rates for a while is a valid one.

This is a "MSE News" thread, posted by a member of MSE staff and relates to a MSE news item on the MSE website. I don't know what more confirmation from MSE you could ask for?