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

pochase

Do you expect Google to remove outdated information?

For the "Ofgem average user" direct debit is still the cheapest way to purchase energy.


It is £ 60 more expensive to use prepaid at the 12000KWh/2900KWh average.

For somebody who does not use gas, prepaid is cheaper, if they use more than 1800KWh of electricity, if they use less direct debit will be cheaper.

The statements you link above compare direct debit with payment by cheque/cash, which is now the most expensive form of payment.

fiscoking

I do believe that if people cannot pay, then measures should be put in place to stop them going further into debt. Placing people on a pre-payment meter seems like a good idea if they're struggling. You have to live within your means.

The real issue is that any 'checks and balances' have now been handed to the energy supplier.

'Ofgem has written to all suppliers to urgently remind them of their obligations.'

This made me laugh. I've been with OVO for 4 months now (forced switch) and they've got every bill wrong, even though I call every month to provide meter readings. They consistently use opening readings that are lower than the last bill closing reading, thereby inflating the cost of the bill. I have the printed bills to prove this, and wrote a post about it. I call every month to explain the problem. A new bill is printed but it has the same problem. I'm paying the bills so I don't get markers on my credit file, and end up on a pre-payment meter.

In the past a court hearing would have solved this, because you need to apply to a court to get a warrant to enter the property and I'd have turned up with a my printed evidence to show I'm being overcharged. Now the onus is on me to take the energy company to court and prove my case, which I will have to do at some point, but *before* I can do that I have to go through the energy ombudsman to prove I've tried to sort this out, which takes at least 3 months (8 weeks of which involve waiting for the supplier to soft it out).

Even if the ombudsman and a court agree with me, the only thing I'll get from my supplier is a letter of apology and an account credit for amounts overcharged.

This is why giving more control over your affairs to any company is a bad idea. It's great when it works, but when it doesn't it can be a lengthy and costly battle to see justice, and *you* end up being pushed into a corner while everything sorts itself out.

"Where they fail to do so, we will take action against them," he said.

I wouldn't hold your breath. This is a sound-byte that could mean in practice that Ofgem just write a letter .... Any Govt. department will do the bare minimum on any situation, and even where they do act with a fine, you don't get a cut of the fine, the exchequer gets the lot.

The solution? Don't switch to a smart meter.

Miser1964

Well, well, well! Who saw this is the 'small print' when they agreed to a 'Smart' meter? Bait and switch, oldest trick in the book. 

EssexHebridean

@fiscoking Have you raised this as a formal complaint? If so, then presumably you are now past the 8 week point and can escalate to the Ombudsman already?  

silverwhistle

The problem with the supply of electricity is that it's a universal need in a modern society and the sheer volumes result in a heavy organisational load, which it is certainly true to say hasn't always been handled well. Not surprising more recently with the churn in the market and companies forced to take on customers they rather wouldn't.

But there have always been different groups of customers. Those with no issues either financially or organisationally, those who are dishonest and don't want to pay if they can get away with it and a third group of the hapless, financially stressed, not very practical, ignoring the issue in the hopes it'll go away and sometimes just not very bright or numerate.

People used to argue when they were cut off, after long and due process, that the leccy board had allowed them to build up too big a debt. Chasing them before then would be classed as harassment. The costs of chasing people and installing prepayment meters is a major one which could be spent in far better ways.

Many years ago I recall a sub-station failure for a large block of flats in a town I worked in. The local electricity company shop had many visits from people paying off their arrears on the assumption they had been cut off!

Smart meters are fine for my first group of customers above, are avoided by the second group and are probably a mixed blessing for the third.

My electricity company have suspended my direct debit temporarily as the government assistance more than covers it at the moment. I've a smart meter which works well for me as it enables the use of a suitable low rate overnight tariff. I've made efforts to reduce my consumption and bills and will review the situation in a month or so and give a Christmas bonus to my local foodbank to reflect that I didn't need all the government aid.

Swipe

Big Saving on prepayment with EDF if you have Economy 7. Some lucky areas can even get as low as 7p per unit on night rate

fiscoking

EssexHebridean said:

@fiscoking Have you raised this as a formal complaint? If so, then presumably you are now past the 8 week point and can escalate to the Ombudsman already?  

Yes, but didn't get a deadlock letter. It's in a queue with the Ombudsman waiting to be reviewed.

Not so much of an issue for me as I can pay while all this plays out, but I feel sorry or those that don't have the spare cash. A great deal of Govt. policy (not just in energy) assumes people have stacks of cash to ride out any 'irregularity' that comes their way as a result of poor policy implementation.

EssexHebridean

If it's past the 8 week point you don't need the deadlock letter as well I don't think - it's one or the other needed, but not both. 

Chrysalis

Well ofgem seems to think there has been some abuse of power, with processes not been correctly followed, so will see if ofgem take action or remain tame.

If it gets to the point a debt has become unacceptable to the provider, isnt a prepay inevitable anyway as they can get a warrant?

Its interesting as when I had my bill dispute with octopus, that balance was left on my account for months without a single request for payment.

molerat

BBC obviously trying to compete with the compo face red top rag stories.

I always remember one of my relatives complaining their credit had run out and they didn't have any money to top up the meter and the kids were freezing.  The night before they were out clubbing - priorities skewed a bit me thinks.

The credit card companies are forced by their regulator to take tough action to prevent customers from getting into more debt.  When the energy companies try to do the same they are pilloried for it.