Energy bills: Let people remove prepayment meters, charity says

A starring foundation has called for an amnesty connected prepayment meters that would let radical to get them removed from their homes.

Age UK said homes connected prepayment meters wage much for state and energy than those connected nonstop debit and hazard vigor being chopped disconnected owed to a deficiency of cash.

Energy firms person paused force-fitting prepayment meters until 31 March.

But Energy UK, which represents firms, claims an amnesty could mean different households would prime up the cost.

The contented of prepayment meters is nether the spotlight aft it emerged past period that indebtedness agents acting for British Gas had breached into susceptible people's homes to force-fit meters.

It prompted the regulator, Ofgem, to inquire suppliers to suspend forced installations. The regulator is besides conducting a reappraisal into however prepayment meters are handled crossed the market.

A authorities spokesperson said: "Ofgem is carrying retired a reappraisal into the usage of prepayment meters, but wherever 1 has been fitted and it is not suitable owed to a customer's condition - specified arsenic if they are highly susceptible - past it should beryllium changed for a recognition meter."

Christopher Brooks, caput of argumentation astatine Age UK, the foundation for older people, told the BBC that the manufacture should usage the accidental to let households to get escaped of prepayment meters if they privation to.

"We deliberation everyone should beryllium fixed the enactment to power due to the fact that prepayment meters person a higher outgo attached to them," helium said. "It is often unfairly penalising immoderate of the poorest radical successful our nine and forcing them to wage higher costs for their energy."

While immoderate households take to person a prepayment metre - arsenic it allows radical to wage arsenic they spell - others are forced into having them if they autumn down connected their bills, portion immoderate inherit a metre from a erstwhile tenant oregon spot owner. The outgo per portion of vigor is higher than nonstop debit, due to the fact that of the costs progressive for suppliers.

Once a pre-payment metre is installed it tin beryllium precise hard to person it removed, and determination is nary automatic reappraisal process to spot if it's inactive the astir due outgo method.

Many properties person a prepayment meter, oregon a astute metre successful prepay mode due to the fact that of a transportation of a erstwhile tenant oregon owner, and it tin beryllium a dilatory and hard process to beryllium transferred.

Each supplier has a antithetic procedure, they are apt to bash a recognition check, and whitethorn inquire for a deposit of astir £300 to region the carnal box.

It's often a shorter process for those blessed to person a astute metre installed alternatively arsenic companies whitethorn consciousness much assured customers volition wage arsenic the astute metre could beryllium flipped backmost into prepayment mode.

Energy costs person soared, peculiarly pursuing Russia's penetration of Ukraine, adding unit to households struggling with the outgo of living.

While Mr Brooks is seeking an amnesty for each radical with prepayment meters, helium highlighted determination were 600,000 UK homes containing astatine slightest 1 idiosyncratic implicit 60 who are connected a prepayment meter.

Age UK said it is "extremely acrophobic astir the interaction of prepayment meters connected older radical surviving connected debased fixed incomes".

Jackie Roeleveld, from Trafford, pays quarterly for her energy but is connected a prepayment metre for her state - which she likes due to the fact that it means she can't spell implicit budget. But she is alert that friends of hers wage little for state connected nonstop debt.

"It isn't fair, everybody should beryllium paying the aforesaid rate," she told the BBC.

But Energy UK, which represents the vigor suppliers, said a broad attack to removing each prepayment meters from people's homes could effect successful those who are successful fiscal trouble falling further into arrears.

"It's accepted that it's atrocious for customers to beryllium falling further and further into arrears which is wherefore suppliers are required to instrumentality steps to forestall it," said an Energy UK spokesman.

"In addition, it's apt overmuch of these arrears volition crook into atrocious indebtedness - volition ne'er get repaid - which ends up going connected different customers' bills."

Ofgem said portion moving a lawsuit to prepayment meters "must beryllium a past resort", it added that "moves to halt prepayment meters risks leaving a superior fiscal blackhole".

"Suppliers person a statutory close to retrieve indebtedness - truthful a prohibition would unit them to constitute disconnected the debt, unit different customers to prime up the tab oregon unit authorities to screen the costs."

We asked the 7 largest vigor providers (Scottish Power, British Gas, EDF, Shell, Octopus, EON and OVO, positive Utilita which has galore pre-pay customers) to update america connected their plans for aboriginal extortion and redress of prepayment customers.

British Gas told america that arsenic good arsenic suspending warrant enactment they are "fully co-operating with Ofgem connected their probe and we volition beryllium contributing to Ofgem's consultation process connected pre-payment meters".

EDF said that it changes customers from prepayment "if it's not the close outgo method for them".

"However, we would request to hold an affordable and sustainable repayment solution with them, for illustration Direct Debit."

Mr Brooks suggested that the authorities should present a cheaper societal tariff, "which fundamentally means a discount connected people's vigor bills for eligible customers".

He said the outgo should beryllium paid for retired of wide taxation. "There is immoderate grade of cross-subsidy truthful determination is immoderate outgo that mightiness beryllium passed connected to different customers, but successful the expansive strategy of things its astir apt not a immense amount," helium said.

"It is decidedly a fairer strategy than penalising immoderate of the poorest radical and making them wage much for their energy."

Ofgem said the full worth of household vigor measure debt, which is wealth inactive owed aft 90 days, reached £2.5bn betwixt July and September past year. It said that magnitude had jumped by £1bn since the opening of 2021.

Energy UK said it was indispensable to look astatine however to guarantee vigor measure affordability successful the future. "That could good see a societal tariff but what this would look similar exactly, who would beryllium covered, however would it beryllium funded," said a spokesperson for Energy UK.

"So by each means let's look astatine that but should beryllium wary of implying that a societal tariff automatically deals with immoderate issues astir prepayment meters."

Do you person a prepayment metre you would similar removing? How was your metre fitted? Email haveyoursay@bbc.co.uk.

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