Support available for north-east people concerned about forced prepayment meters
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North-east people worried about being forced onto prepayment meters have been urged to contact the country’s national energy advice service, after three major firms were given the go-ahead to restart the practice.
Energy regulator Ofgem announced today that Scottish Power, EDF and Octopus will be able to begin forcibly installing the devices in homes after obtaining court warrants.
For customers who already have a smart meter, the firms will also be able to remotely switch them to prepayment mode without the need for a warrant.
However, new rules have been put in place to protect vulnerable consumers after investigations into British Gas and the wider market led to the suspension of the practice.
Advice Direct Scotland, which operates the energyadvice.scot service on behalf of the Scottish Government, is encouraging households to be aware of their rights and understand when a supplier can install a prepayment meter (PPM).
The charity has reminded Scots that, under Ofgem’s new code, suppliers are now banned from forcing PPMs on the most vulnerable people.
This includes the over-75s, families with children under two, those needing a continuous energy supply for health reasons, or those unable to top-up a meter due to incapacity.
Energy firms must also contact customers at least 10 times about their debt before applying for a warrant. The debt should exceed £200 and have been outstanding for three months.
They are also required to offer an affordable repayment plan, conduct a site welfare visit and ensure it is safe to install a PPM.
Firms that break these rules could face enforcement action and substantial fines.
Advice Direct Scotland said anyone who feels unfairly treated or that a PPM is not suitable for them should make a complaint to their supplier.
The energyadvice.scot team can help customers who are struggling to resolve issues related to PPM installations. A team of advisers is available on freephone 0808 196 8660, Monday to Friday, 9am to 5pm.
Hazel Knowles, energy lead for Advice Direct Scotland, said: “We know that this winter is already proving extremely tough for many people. The restart of involuntary PPM action will add to this stress.
“Ofgem’s stricter rules will go a long way in ensuring that the most vulnerable energy customers, who are struggling to pay their bills, are not being forced onto the devices.
“But with Scotland in the grip of winter and energy prices still high, we know that many people will be worried about falling into debt and being given a PPM.
“The devices leave people paying more and at risk of self-disconnection when they can’t afford to top up their meter.
“It's vital that consumers know their rights and don’t accept a PPM without proper procedures. If you have energy debt and are worried, contact energyadvice.scot for advice, information, and support.”
Gordon MP Richard Thomson has said the announcement from Ofgem that it is to allow certain energy companies to force-fit prepayment meters to customers’ homes will require careful monitoring.
He said: “While prepayment meters can be a useful tool to help customers monitor and budget their energy usage – much like a pay-as-you-go mobile phone contract – PPMs mean that customers pay for energy as they use it, instead of building up credit or paying quarterly, which helps reduce the chance of debt build-up.
“Whilst many PPM customers prefer this way to pay, I think that we should be mindful of how we got to a position in the first place where the installation of PPMs was banned, and that was through some quite horrendous cases of abuse of the system by energy companies, who hired debt collectors to break into people’s houses to fit these meters despite clear signs of vulnerable people or very young children living there. That remains the subject of a live investigation.
“There is a range of support available to constituents who may find themselves under pressure due to high energy costs and both I and my office will always be happy to advise.
"However, these new powers granted by Ofgem to energy companies need to be carefully monitored to prevent any further abuses.”
