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There are new rules for installing involuntary prepayment meters!

Hannah_Alumni

Thank you @Tori_Scope for sending this report from Ofgem to us in the community 😊

You may have seen online or on the news last night, that from 8th November 2023, energy suppliers will have to follow stricter rules when it comes to installing a prepayment meter involuntarily in a household.

There have been many concerns over viral videos of energy suppliers breaking into homes to install prepayment meters as a way to recoup debt owed.

According to the article by Ofgem:

“Currently, no energy suppliers are carrying out prepayment meter installations without the consent of the household. They will not be able to do so until they have shown that they meet the strict criteria we have set. The new rules will start from 8 November 2023. They will make sure that when energy suppliers do start involuntary installations they will act in a fair and responsible way and will only use them as a last resort.”

Here are the rules energy suppliers must follow before a prepayment meter can be involuntarily installed:

Make at least 10 attempts to contact a customer before a prepayment meter is installed.
Carry out a site welfare visit before a prepayment meter is installed.
Refrain from all involuntary installations for the highest risk customers including:
- Households which require a continuous supply for health reasons, including dependence on powered medical equipment.
- Households where all occupants are aged 75 years and over (if there is no other support in the house).
- Households with children aged under 2 years old.
- Households with residents with severe health issues, including terminal illnesses or those with a medical dependency on a warm home (for example, due to illness such as emphysema, chronic bronchitis, sickle cell disease).
- Where there is no one within the household that has the ability to top up the meter due to physical or mental incapacity.
Audio or body cameras must be worn by the lead supplier representative present on all warrant installations or site welfare visits to check for vulnerabilities ahead of an involuntary installation or remote mode switch. All audio and footage will be available for audit.
Give a £30 credit per meter (or equivalent non-disconnection period) on all warrant installations and remote switches as a short-term credit/measure to remove the risk of customers going off supply at the point of PPM meter installation.
Re-assess the case once a customer has repaid debts owed. Suppliers must contact the customer to offer an assessment of whether a prepayment meter remains the most suitable and preferred payment method of choice for consumers; if any prepayment meter customer is clear of debt and wishes to move off their prepayment meter (understanding any changes in the tariff they will pay), the supplier must agree where the customer passes any required credit check.

Over to you:

What are your thoughts on the rules?
Is there something you would change or add?
Do you think this will make a difference?

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Comments

Jimm_Alumni

I mean, my personal opinions is there should never be anything involuntarily done to your home in this manner, it's just more egregious because pre-payment meters cost more long-term. Why is the solution for someone struggling to pay bills breaking into their home and making their bills higher?

In the end it's just a symptom of a rather broken system from the top-down. In my opinion, we have failed as a society if at the same time a company can make profits in the multi-billions, their customers are having to choose between starving or freezing.

WelshBlue

It's my understanding that pre-payment is no longer more expensive than direct debit ...

https://www.gov.uk/government/news/prepayment-meter-customers-to-pay-less-for-energy-from-today#:~:text=Prepayment meter households will no,the government scraps unfair charge.&text=Fairness will be delivered for,charge on prepayment meter customers.

Jimm_Alumni

I suppose it's better late than never.

Jimm_Alumni

Having a glance at the above document, the government is subsidising those on pre-payment metres, so energy companies are still charging higher. They're just taking money from the government to balance it back out. I'm not sure why the government can't just have them charge the same amount, it's not like the energy suddenly becomes more expensive the moment it passes through a pre-payment meter. After April 2024, when the government will stop this subsidy, Ofgem must "work with the industry" to remove prepayment meters. Which is unfortunately very vague with no set deadline.

MarieBarl

WelshBlue said:

It's my understanding that pre-payment is no longer more expensive than

It isn't supposed to be, but it can be a very long fight to get money back after a debt has been repaid and the meter still chugs away at the higher setting.

We 'inherited' a tarriff from previous tenants and had to change suppliers before we could get it addressed.

Fortunately at that time we were not desperate for money, it does highlight how irresponsibly some of the energy companies have been behaving.

2oldcodgers

Refrain from all involuntary installations for the highest risk customers including:

- Households where all occupants are aged 75 years and over (if there is no other support in the house).
- Households with residents with severe health issues, including terminal illnesses or those with a medical dependency on a warm home (for example, due to illness such as emphysema, chronic bronchitis, sickle cell disease).

OK, this is what gets my blood boiling!!

We two at home, both over 75 with no other support in the home and both of us are recognised as being vulnerable due to chronic health issues.

Despite all of the above we pay for our fuel every month. In fact we have a credit balance far in excess of what will be needed for the winter even excluding the Winter Warmth payments paid to us by the fuel company.
Why should we be in this position?
If we refused to pay any further fuel charges there is little that the fuel company can do to force us. They cannot, because of these new rules impose a prepayment meter. What other action could they take.?

It really makes us wonder why doing the right thing and paying all of our bills on time at the expense of sometimes not having sufficient food in the cupboard we are penalised.

muuranker

I am concerned that there is no acknowledgement that people, due to disability may have specific communication needs: eg all 10 contacts must be in a form that the person recieving them can access, the welfare visit must be by someone able to communicate with the person concerned directly (no depending on children to translate to BSL or expecting someone with sight loss to accept sight of an official pass or letter to allow them to enter their home).

2oldcodgers

MarieBarl said:

WelshBlue said:

It's my understanding that pre-payment is no longer more expensive than

It isn't supposed to be, but it can be a very long fight to get money back after a debt has been repaid and the meter still chugs away at the higher setting.

We 'inherited' a tarriff from previous tenants and had to change suppliers before we could get it addressed.

Fortunately at that time we were not desperate for money, it does highlight how irresponsibly some of the energy companies have been behaving.

It's not just getting the debt money back we have argued with our supplier many times over the excessive buildup of funds on the account. As was the case last winter by spring time 2023 we had not just paid all of the winter bills but had amassed a credit balance in May totaling over £800!! Looking at the reductions in cost this year and with our DD still at the same level as was 12 months ago it is highly likely that the 'winter fund' will exceed £1000 by November!!
The fuel company have told us consistently that they will not refund anything as it is in our interests to maintain a healthy credit balance throughout the year.

WelshBlue

@2oldcodgers ... I think your Utility company is being totally unreasonable. I've just got my BIL a big refund after my late sister set up a huge Direct debit on their insistence, it would have to be an ice age for them to use what the DD was monthly

OfGem say:

Credit on a live account

You can ask your supplier to refund you at any time. Suppliers must do so promptly unless they have reasonable grounds not to.

Before claiming a refund, think if:

it could be difficult paying your bills without a credit balance
your usage or costs could increase in the coming months (such as over winter).

Have you considered contacting the Ombudsman ?

On forced pre-payment ... sadly you've got those who can but don't pay bills, and those who are genuinely in dire straights - unfortunately, it's the only way to re-coup monies back ?
A tradesman can go and rip something out for non-payment - utilities are gone once used.

We once cut up £10,000 of timber because we weren't paid the £4000 we were owed - bills and debts have to be paid somehow. In that case all we got was satisfaction

I have got an issue with the ludicrous standing charges - inflated to cover the costs of failed companies, so the majority have to pay more for those who had cheaper in the first place. OfGem need to start reining in on those ... those charges are punishing those who can't heat their homes

Jimm_Alumni

I would complain if they refuse to refund your credit if it's that high. If they still refuse then as @WelshBlue says, ask for a deadlock letter and take it to the ombudsman. While the Energy Ombudsman is run by the energy industry it still costs them for an issue to go to the ombudsman so they do try to avoid it.

2oldcodgers

Thanks for all of your comments.
Everything always seems to be a hassle when you know that you are right but have to fight to get the right result.
Life at the moment living is damned hard around health issues for both of us. Everywhere I go there always seems to be roadblocks.
Even trying to get a renewal for my Blue Badge is one step too far. The council want info and evidence yet they have had it but hey ho they have lost it. I just don't have the capacity to fight them on it. I drive a Motability car yet am not allowed to park it in any disabled bay!
Another is the water supplier. The main stop **** is in an place that I cannot get to and in addition doesn't even work - it is frozen full on with no means to switching it off.
They want me to pay them £hundreds to get it changed. Why? it's their pipe!
The list goes on and on.

trashpanda

I have a debt because my old energy supplier migrated my account to a new one and didn't tell me. First I knew about it was when access was forced to my property with no warning to fit prepayment meters which were unsuitable due to disabilities.

I then requested smart meters and they agreed but messed up the installation 4 times!!! In that time I accrued further debt as they told me there was no way of accepting a payment while my meters were in limbo situation.

Ombudsman waded in and the energy company finally agreed a payment plan with me based on current and past usage, and I agreed to a 2 year fixed term tariff. Low and behold they've sent me a letter not even one month into my new tariff to say they're tripling the direct debit because they want the money back within 18 months "as per industry standards".

Now they're chasing me for debt again so badly they've threatened debt collectors and forced pre payment meters saying my refusal of open access banking is a sign that I am hiding money. I didn't renew the access because up until 3 days ago it was active and refreshing daily so they've been able to see it for the last 3 months. I have had no choice but to cancel my direct debit (this caused them to throw a fit) and say I will pay via a manual bank transfer every month. They've declined this and re-iterated they will force a pre-payment meter on me regardless.

I'm now having to make a decision between heating my home and eating and being able to afford my bills while keeping myself and my disabled child safe and comfortable.

Shame that energy companies can treat people like this really. I don't see how they're going to fully regulate this.