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Rise in energy firms remotely switching homes to prepay meters (BBC)

daaave
daaave Posts: 703 Forumite
Part of the Furniture 500 Posts Name Dropper Combo Breaker
edited 10 November 2022 at 10:47AM in Energy
https://www.bbc.co.uk/news/business-63554879

A rising number of households are having their energy smart meters remotely switched to prepayment meters, the energy regulator has said.

(Full text removed by Forum Team)

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Comments

  • Scarum
    Scarum Posts: 115 Forumite
    Part of the Furniture 10 Posts Name Dropper Mortgage-free Glee!
    Problem is quite a lot have already been duped into smart meters so already under the thumb.
  • If a customer does not pay then i feel a supplier is totally right to switch the smart meter into prepaid mode. BUT if the customer is on the PSR, is vulnerable, is trying to make payments etc then the energy supplier should morally keep them on a credit meter and not switch it to prepaid mode.

  • matelodave
    matelodave Posts: 9,164 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    what happened if you had an old style paygo meter when you didn't pay.
    Never under estimate the power of stupid people in large numbers
  • pochase
    pochase Posts: 3,449 Forumite
    1,000 Posts Third Anniversary Name Dropper
    what happened if you had an old style paygo meter when you didn't pay.
    The process up to the decision to put a user onto a smart meter is the same for smart and key meters. This involves things like to offer a payment plan, but if somebody is unable to pay for their current use, how can a payment plan work?

    The difference is that for the smart meter it is on the push of a button, while for the key meter somebody will need to get into their home to swap out the meter. The later can be avoided temporarily by refusing entry, and will require a warrant and forced entry, the cost of which will be added to the debt loaded to the new prepaid meter.


  • Mobtr
    Mobtr Posts: 672 Forumite
    500 Posts Second Anniversary Name Dropper
    there’s there’s a long process in changing someone to PAYG, it’s not just decided one day & done the next. Letters are sent, phone calls are made & changing is the last resort if there is no customer contact.
    there is usually a 14 day non disconnection time when the change is made so it’s not a case of change & off supply straight away & certainly with EDF PAYG & prepayment are their cheapest method of payment, cheaper than direct debit. 
  • are prepayment customers buying energy at a higher rate than the standard tariff? Or is it just more expensive because they are paying down debt on the account?


     
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 9 November 2022 at 8:56AM
    Reading the BBC article about "Kelly" who's managed to ramp up over £1000 in debt - there's no way that she'll ever repay that AND keep her lights on at the same time.

    At least with a prepay, she'll be able to have leccy and possibly (although unlikely) pay some of the arrears back. In the end its the rest of us who end up paying her bill. 

    As with most stories, it would be better if the whole story came out to find out what really happened because it would have taken a fair amount of effort to get over £1000 in debt unless you don't pay anything.

    You cannot just keep allowing people to use as much as they like without having some sort of control. You aren't allowed to go an fill your car up without paying, not take stuff off the shelves in Tesco without paying so why allow people to do it with energy and then not expect something to be done about it.

    I really doubt that energy companies arbitrarily swap people over without trying to come to some arrangements with the customer, but for some people, it's probably the only way the company can limit their losses.

    In the end, taking energy without paying for it is really theft.
    It's the fact that it's done remotely without properly informing people and without the need to get a court warrant. Mistakes happen.

    There are often disputes about accuracy of meter readings. Remember the post office workers that ended up in prison for fraud because the Post Office didn't believe that their software could be wrong?

    This capability for remote switching off/over of meters leaves everyone vulnerable to disconnection due to human error, computer error, or dodgy practices by the energy company concerned.

    It's almost impossible to stay alive without access to the National Grid. People can no long go out to the woods to cut down trees to burn. They have been made totally dependant upon the National Grid - which is now policed by big corporations. They should not have so much power when it comes to something that people rely on to stay alive.

    As for people running up debt. Again, it used to be possible to gather and burn wood or get cheap coal. Governments have made that impossible - they've made people entirely dependent upon the grid, and now prices have hit levels that are beyond what many can afford. No amount of budgeting is going to change that. If they are denied access to energy from the grid they will die. That's the stark reality. A death sentence without judge and jury?
  • bristolleedsfan
    bristolleedsfan Posts: 12,694 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 9 November 2022 at 9:04AM
    are prepayment customers buying energy at a higher rate than the standard tariff? Or is it just more expensive because they are paying down debt on the account?


     

    It's more the case that DD is discounted. DD budget puts large sums of money in their coffers.
    Depending on usage 5p per day more SC. lower unit rate might be hardly any difference for electricity.

    Most regions cheaper economy 7 night hours via smart pre-pay with EDF than direct debit

    https://www.edfenergy.com/sites/default/files/government_energy_price_guarantee_prices._standard_variable_deemed_and_welcome._credit_meters.pdf?


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