Being "disconnected" as a prepayment customer

MickyLuv

Being "disconnected" as a prepayment customer due to inability to pay is bad enough.

 As I understand it one thing the customer will not be disconnected from is the accumulating debt of the daily standing charge which will be clawed back if and when prepayments are resumed.

The companies and the government knew that by making power consumption increasingly expensive many/most people would be forced to cut down on use.

While this situation would make life more unpleasant for the consumer it was important that energy firms profits and government tax levels  were safeguarded. This was achieved by increasing the daily standing charge.

Because I spend a lot of time every year away from my flat. I was quite keen to go on the prepayment option in the hope that when my home was empty there would be less expense.

The gotcha was that all the time the energy supply was stopped the daily standing charge would continue to be made.

QrizB

MickyLuv said:

Because I spend a lot of time every year away from my flat. I was quite keen to go on the prepayment option in the hope that when my home was empty there would be less expense.
The gotcha was that all the time the energy supply was stopped the daily standing charge would continue to be made.

Prepayment typically has a higher daily standing charge than you have with a credit account paid by DD.

If you're a lower-than-average user, sticking with DD will cost you less than prepayment.

pochase

For a situation like yours Utilitia offers a tariff where there is no standing charge, but the first two KWh are the normal price per KWh + half the standing charge, so if you don't use anything you don't pay the standing charge.

As far as I am aware they take not on new customers any longer, and you will need a smart meter for a scheme like this to work.

MickyLuv

Are some people who are struggling financially forced onto a prepayment system?

If such people are unable to input credit into their account are they disconnected?

When they are disconnected and left without power, are they still accumulating debt on the basis of the recently increased standing charge?

If so, they are being forced to pay for a service they are not receiving, specifically because they cannot afford it.

In other words the poor are being gouged to secure the comfort of the wealthy.

Astria

MickyLuv said:

Are some people who are struggling financially forced onto a prepayment system?

If such people are unable to input credit into their account are they disconnected?

When they are disconnected and left without power, are they still accumulating debt on the basis of the recently increased standing charge?

If so, they are being forced to pay for a service they are not receiving, specifically because they cannot afford it.

In other words the poor are being gouged to secure the comfort of the wealthy.

Nobody is forced onto a prepayment system or disconnected unless they refuse to pay or enter into a payment plan. Eg. They simply refuse to pay the bills and cancel DDs but don't talk to their provider about their problems.

Standing charges are always incurred until such point you no longer have a connection - if you don't want the standing charge you need to arrange to have the meter removed and the connection capped.

elsien

MickyLuv said:

Are some people who are struggling financially forced onto a prepayment system?

If such people are unable to input credit into their account are they disconnected?

When they are disconnected and left without power, are they still accumulating debt on the basis of the recently increased standing charge?

If so, they are being forced to pay for a service they are not receiving, specifically because they cannot afford it.

In other words the poor are being gouged to secure the comfort of the wealthy.

Perhaps you could explain that logic behind that statement because I'm not sure how people being unable to afford their utilities is specifically related to the comfort of the better off? 

MickyLuv

elsien said:

Perhaps you could explain that logic behind that statement because I'm not sure how people being unable to afford their utilities is specifically related to the comfort of the better off? 

I'm sorry you don't understand it.

EssexHebridean

MickyLuv said:

Are some people who are struggling financially forced onto a prepayment system? Those who do not engage with the energy company after accruing debt, or who still do not make payments may be switched to Prepayment meters following a lengthy process, yes.

If such people are unable to input credit into their account are they disconnected? In much the same way as if you don't pay to put petrol into your car, it will eventually run out of fuel, if you don't pay for the energy you wish to use on a prepayment meter it will in effect eventually "run out of energy" - yes. 

When they are disconnected and left without power, are they still accumulating debt on the basis of the recently increased standing charge? The standing charge continues to accrue as the costs that it covers continue to accrue, yes. 

If so, they are being forced to pay for a service they are not receiving, specifically because they cannot afford it. I'll tread carefully here - they are paying the standing charge because they still have the option of a supply - and that in real terms is what is relevant. To avoid paying the standing charge you need to have the meter removed - that carries with it a cost. In the same way, if you don't drive your car for a couple of weeks and so don't put any fuel into it, you still have to pay the insurance and road fund licence if you still have the vehicle parked on the public road. As and when you want to put some more fuel in and drive again, you are ready to go without having to incur further costs, in the same way that when someone tops up their pre-payment electricity meter they are immediately "ready to go". 

In other words the poor are being gouged to secure the comfort of the wealthy. Again, and as already asked, I'd be interested to see you explain your logic here for the benefit of others visiting the thread. If you feel that you are correct with this assertion then surely it should be possible to give some clarification on why you feel that it is the case.

Some explanations for you in bold above, OP, plus a request.

km1500

Standing charges really are iniquitous and should be scrapped.

There are many analogies around, but for me the one that works is being forced to pay Shell a daily 'standing charge' in order to be allowed to use their forecourts to fuel your car, even if you decide to SORN your card for 6 months because you are hard up.

macman

Your analogy is absurd, because, even if you don't use any energy, the supplier is still incurring the cost of billing, meter reading, maintaining the supply, the emergency service provision and meter reading.
If Shell don't sell any fuel at a garage for one day, they don't get a reduction in their business rates...

pochase

Furthermore Shell is not going to keep the money for themself, the standing charges are mainly just collected by them and paid over for the cost of the SOLR process, network cost, green levies etc.