Smart meters on the News - Being switched to prepayment without notice.

grn99

"Suppliers can use the technology to swap customers onto a payment method that is often more expensive without their permission."  Interesting piece on BBC1 just now about energy suppliers remotely switching people onto smart meters without notice. If there was ever a reason not to switch to smart this is it. It's being called "disconnection by the back door". No warrant needed, no notification at all...ofgem way too slow trying to catchup. https://www.bbc.co.uk/news/business-63554879 https://www.theguardian.com/business/2022/nov/09/british-energy-suppliers-criticised-over-disconnection-by-the-back-door  

MattMattMattUK

There was a six page thread on this earlier in the week.

https://forums.moneysavingexpert.com/discussion/6401663/rise-in-energy-firms-remotely-switching-homes-to-prepay-meters-bbc

The short person is that they are not doing this with no reason, only when people persistently do not pay their bills, pre-payment tariffs are for almost everyone cheaper now that Direct Debit (although the difference is a few pence). Personally I do not feel that Ofgem need to catch up, if people do not pay their bills they are put onto pre-payment, if they then do not pay for the energy they use then the meter will not supply it, that is a perfectly reasonable position. 

brewerdave

MattMattMattUK said:

There was a six page thread on this earlier in the week.

https://forums.moneysavingexpert.com/discussion/6401663/rise-in-energy-firms-remotely-switching-homes-to-prepay-meters-bbc

The short person is that they are not doing this with no reason, only when people persistently do not pay their bills, pre-payment tariffs are for almost everyone cheaper now that Direct Debit (although the difference is a few pence). Personally I do not feel that Ofgem need to catch up, if people do not pay their bills they are put onto pre-payment, if they then do not pay for the energy they use then the meter will not supply it, that is a perfectly reasonable position. 

Haven't got a problem with this approach provided that 1) the customer has been offered payment options and 2) the customer has been made aware of the switch over, well in advance of it actually happening. 
My own experiences with companies various over the last 12 months , doesn't fill me with much confidence !

mr_stripey

grn99 said:

"Suppliers can use the technology to swap customers onto a payment method that is often more expensive without their permission."  Interesting piece on BBC1 just now about energy suppliers remotely switching people onto smart meters without notice. If there was ever a reason not to switch to smart this is it. It's being called "disconnection by the back door". No warrant needed, no notification at all...ofgem way too slow trying to catchup. https://www.bbc.co.uk/news/business-63554879 https://www.theguardian.com/business/2022/nov/09/british-energy-suppliers-criticised-over-disconnection-by-the-back-door  

Was covered in detail earlier this week but to to pick up on this point, I fail to see how not disconnecting someone could be inferred has "disconnection by the back door".

It is an entirely hyperbolic statement. 

It may actually help people who have got into arrears by doing this so that they don't incur further costs.

grn99

Well, both Ofgem and the trade body is admitting mistakes have been made. Let's see how it plays out.

EssexHebridean

The notable takeaways fromthe other thread were, as I recall:
It’s not disconnection in any form
it’s not being done with no warning - indeed getting to the point of switching to pre-pay takes a long while!
Quite often the prepay tariff will be LESS expensive for the customer, not more expensive as the BBC infer.
Thst the media love a dramatic headline and often leave out the salient facts - knowing that a good many people will assume that because they are reading it on the BBC, it must be correct… 

Ectophile

mr_stripey said:

Was covered in detail earlier this week but to to pick up on this point, I fail to see how not disconnecting someone could be inferred has "disconnection by the back door".

When someone is on a credit meter, but can't pay the bill, then disconnecting them for non payment involves a long process, and going through the courts.  The customer gets a chance to plead their case, and the energy company may find the court delays the disconnection.

Switch someone to prepayment, and as soon as they run out of credit on the meter (and run out of emergency credit), then the power goes off.  But it's called "self disconnection", so the energy company can deny any responsibility, and no court is involved.

So if you want to disconnect someone who simply can't pay, remotely switch them to prepayment, and their power will go off in a few days.

grn99

Ectophile said:

mr_stripey said:

Was covered in detail earlier this week but to to pick up on this point, I fail to see how not disconnecting someone could be inferred has "disconnection by the back door".

When someone is on a credit meter, but can't pay the bill, then disconnecting them for non payment involves a long process, and going through the courts.  The customer gets a chance to plead their case, and the energy company may find the court delays the disconnection.

Switch someone to prepayment, and as soon as they run out of credit on the meter (and run out of emergency credit), then the power goes off.  But it's called "self disconnection", so the energy company can deny any responsibility, and no court is involved.

So if you want to disconnect someone who simply can't pay, remotely switch them to prepayment, and their power will go off in a few days.

Sums up "disconnection by the backdoor" very well.

EssexHebridean

So the question is, what should the energy supplier do instead? 

grn99

It's more what they shouldn't do - switch those on smart meters to prepayment by the backdoor.

Andy7856

On a similar note DCP 371: Last resort arrangements for Distributors to manage specific consumer connected devices, makes an interesting read also.  It relates to governance arrangements regarding Distributors ability to manage consumer devices (such as EV chargers) connected to Smart Meter infrastructure.  Not sure if still under review or not hopefully someone a bit closer to the know, will know?