Hello everybody,
As I just read on the news about the new Ofgem code of practise in regard of the prepayment meters forced installations, I thought it would have been useful to have a chat about it on here.
The News:
The energy regulator Ofgem has put out new guidelines and a new code of conduct, asking suppliers to suspend the forced installation of prepayment meters and review their processes for dealing with customers who have fallen behind with bills' payments
They implemented (at least for now) a ban for the meters installation in homes of people 85yo and over and in people with severe health conditions, including terminal illnesses.
First of all, what is a prepayment meter and what does it do?
Prepayment meters are pay-as-you go gas and electricity meters. They can be topped up online or with a card or at certain shops and post offices.
It is estimated that currently around four million of UK households have one (we hope voluntarily!) and they were implemented mainly to help people that are struggling financially as you can top up small sums at the time and kind of budget yourself.
What's the downside?
As always, there is a negative side: if you run out of money, your energy will immediately switch off as it is an automatic mechanism. Point being that people that have been unable to pay their energy bills and have fallen behind significantly, have seen their energy providers try actively to switch them onto a prepaid meter - so they stop getting access to energy they haven't paid for.
Citizen Advice (an independent organisation specialising in confidential information and advice to assist people with legal, debt, consumer, housing and other problems in the United Kingdom) estimated, according to their data, that more than 3 million people ran out of money to pay their energy bill last year and saw their utilities switched off.
What is Ofgem And What Has Been Said About Forceful Installation Of Prepayment Meters?
Ofgem is The Office of Gas and Electricity Markets, supporting the Gas and Electricity Markets Authority and it is the government regulator for the electricity and downstream natural gas markets in Great Britain)
Their job is basically to create regulations and give them to energy providers in order for them to deliver a fair service to UK citizens without any alleged practice abuse or irregular pattern of behaviour.
They decided to implement new regulations and new guidelines after an undercover investigation done by the magazine Time claims that British Gas contractors forced their way into people's homes (vulnerable ones included) to forcefully install at least 94000 meters - pointing the finger specifically at British Gas as they have allegedly given Arvato Financial Solutions ( a third party company used by British Gas to pursue debts) bonuses based on the number of successful installations.
Chris O'Shea did put out an apology (!!!) and talking to Sky News' business presenter Ian King said "I am really, really sorry, We've clearly got it wrong here and we are going to fix that", also adding that customers do not deserve to be treated in such a way and that he would be launching an independent investigation.
What Are The New Rules?
New Code of Conduct now says that energy firms must try to contact a customer at least ten times and do a "site welfare check" before they can forcibly install a prepayment meter.
New guidelines also say installations should not take place where people have severe health issues - including terminal illness and in homes of people 85yo and over, with protection also guaranteed to individuals that suffer from conditions that will be made worse by the cold (like emphysema), and in households where people systematically need electricity for medical kits and equipment.
What's The Public Opinion On The Matter And What Should Be Happening Going Forward?
At this moment in time, all of Britain's domestic energy suppliers have signed up to the Ofgem code of conduct and installers will also have to wear bodycams to check they are complying.
Ofgem chief Jonathan Brearley was very clear that regulations will have to be implemented without exceptions and ban will only be lifted if and when the situation will be completely under control and there will be no danger of misbehaviour from supplier and third party companies.
The reaction to this new direction taken by Ofgem was not necessarily met with excitement and the Liberal Democrats are just one among several groups to say the changes still leave people unprotected.
"This half-measure is an insult to all the people who had their homes broken into by big gas companies," said energy spokesperson Wera Hobhouse MP.
Citizens' Advice said it was a "much-needed improvement" and that "it's now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice".
But its boss, Dame Clare Moriarty, warned that Ofgem "must also act swiftly to make this voluntary code mandatory".
Ofgem Official Response:
The regulator said they will closely monitor firms to make sure they stick to the new code and that companies must set out a plan on how they will implement it.
Firms also need to conduct an audit to identify customers who had prepayment meters wrongfully installed and these people should be offered compensation and a return to regular billing.
A Few Providers You Can Check Current Offers From:
Scottis Power
British Gas
Ovo Energy
SSE Energy
EDF Energy
A Few Resources:
Hotukdeals Energy Thread (Loads of Info on the topic, Discount, Grants and More - Thanks To )
BBC Article on the Ban - HERE
SKY News Article About the Time Investigation - HERE
SKY News Article About Prepayment Meters Penalty End - HERE
As I just read on the news about the new Ofgem code of practise in regard of the prepayment meters forced installations, I thought it would have been useful to have a chat about it on here.
The News:
The energy regulator Ofgem has put out new guidelines and a new code of conduct, asking suppliers to suspend the forced installation of prepayment meters and review their processes for dealing with customers who have fallen behind with bills' payments
They implemented (at least for now) a ban for the meters installation in homes of people 85yo and over and in people with severe health conditions, including terminal illnesses.
First of all, what is a prepayment meter and what does it do?
Prepayment meters are pay-as-you go gas and electricity meters. They can be topped up online or with a card or at certain shops and post offices.
It is estimated that currently around four million of UK households have one (we hope voluntarily!) and they were implemented mainly to help people that are struggling financially as you can top up small sums at the time and kind of budget yourself.
What's the downside?
As always, there is a negative side: if you run out of money, your energy will immediately switch off as it is an automatic mechanism. Point being that people that have been unable to pay their energy bills and have fallen behind significantly, have seen their energy providers try actively to switch them onto a prepaid meter - so they stop getting access to energy they haven't paid for.
Citizen Advice (an independent organisation specialising in confidential information and advice to assist people with legal, debt, consumer, housing and other problems in the United Kingdom) estimated, according to their data, that more than 3 million people ran out of money to pay their energy bill last year and saw their utilities switched off.
What is Ofgem And What Has Been Said About Forceful Installation Of Prepayment Meters?
Ofgem is The Office of Gas and Electricity Markets, supporting the Gas and Electricity Markets Authority and it is the government regulator for the electricity and downstream natural gas markets in Great Britain)
Their job is basically to create regulations and give them to energy providers in order for them to deliver a fair service to UK citizens without any alleged practice abuse or irregular pattern of behaviour.
They decided to implement new regulations and new guidelines after an undercover investigation done by the magazine Time claims that British Gas contractors forced their way into people's homes (vulnerable ones included) to forcefully install at least 94000 meters - pointing the finger specifically at British Gas as they have allegedly given Arvato Financial Solutions ( a third party company used by British Gas to pursue debts) bonuses based on the number of successful installations.
Chris O'Shea did put out an apology (!!!) and talking to Sky News' business presenter Ian King said "I am really, really sorry, We've clearly got it wrong here and we are going to fix that", also adding that customers do not deserve to be treated in such a way and that he would be launching an independent investigation.
What Are The New Rules?
New Code of Conduct now says that energy firms must try to contact a customer at least ten times and do a "site welfare check" before they can forcibly install a prepayment meter.
New guidelines also say installations should not take place where people have severe health issues - including terminal illness and in homes of people 85yo and over, with protection also guaranteed to individuals that suffer from conditions that will be made worse by the cold (like emphysema), and in households where people systematically need electricity for medical kits and equipment.
What's The Public Opinion On The Matter And What Should Be Happening Going Forward?
At this moment in time, all of Britain's domestic energy suppliers have signed up to the Ofgem code of conduct and installers will also have to wear bodycams to check they are complying.
Ofgem chief Jonathan Brearley was very clear that regulations will have to be implemented without exceptions and ban will only be lifted if and when the situation will be completely under control and there will be no danger of misbehaviour from supplier and third party companies.
The reaction to this new direction taken by Ofgem was not necessarily met with excitement and the Liberal Democrats are just one among several groups to say the changes still leave people unprotected.
"This half-measure is an insult to all the people who had their homes broken into by big gas companies," said energy spokesperson Wera Hobhouse MP.
Citizens' Advice said it was a "much-needed improvement" and that "it's now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice".
But its boss, Dame Clare Moriarty, warned that Ofgem "must also act swiftly to make this voluntary code mandatory".
Ofgem Official Response:
The regulator said they will closely monitor firms to make sure they stick to the new code and that companies must set out a plan on how they will implement it.
Firms also need to conduct an audit to identify customers who had prepayment meters wrongfully installed and these people should be offered compensation and a return to regular billing.
A Few Providers You Can Check Current Offers From:
Scottis Power
British Gas
Ovo Energy
SSE Energy
EDF Energy
A Few Resources:
Hotukdeals Energy Thread (Loads of Info on the topic, Discount, Grants and More - Thanks To )
BBC Article on the Ban - HERE
SKY News Article About the Time Investigation - HERE
SKY News Article About Prepayment Meters Penalty End - HERE
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110 Comments
sorted by“The moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; those who are in the shadows of life, the sick, the needy and the handicapped.”
mirror.co.uk/new…055
bylinetimes.com/202…ll/
The vast majority of prepayment meters are requested by customers who genuinely don’t want to get into debt.
The media investigation related to three customers, not 94,000 quoted in the OP.
Energy companies make less than £10 per customer per year from energy supply. Hence why so many went bust (we are paying for that too….)
For clarity if I buy something for 99p and sell it for a pound I can say I make 1p profit per sale, if you find I’m buying it from my brother for 99p who is buying it for 20p wholesale then our family profit is actually 80p per sale. In this scenario I would be BG our family Centrica.
Unlike the big suppliers, the firms that went bust couldn’t weather the storm for this very reason i.e. Centrica can afford to make a loss on BG because it’s still making money altogether.
There will always be those who have a genuine reason to be behind, perhaps the main earner has suffered a catastrophe and was not in a position to access the benefit services, or those services were late in being applied. But then there are others who prefer the idea of leisure and personal pursuits over their responsibilities. So each case should be judged fairly. But for those on a regular benefit, even making payments to cover the standing charges immediately after receiving funds would at least show willing, and would not allow the bill to climb too high too quick. I am on benefits, not in debt, and also on a Smart meter, but I have a regular standing order to cover my standing charges so that my spending appears minimal and hurts less. It is psychological, and not logical. It then means that when the actual energy bill lands, I don't feel concerned.
There are many who buck the system, and a tar brush is applied. Because of them the genuine suffer
I moved into a new property last year and there was an existing prepayment meter installed, having been on credit meters(good credit history) I rang SSE to get it swapped out, from endless waits trying to actually speak to someone after a few days I managed to get someone to faciltate the move. Roll on a few weeks I never got a call regarding a date and have given up now chasing them.
So for me im pleased the prices are changing as im stuck and im not the only one I have read about.
Playing off one group against another to decide who is most deserving is pointless. Loads of people are in financial crisis because even though they carefully budgeted and were responsible a year ago the cost of everything has risen beyond what is foreseeable, regardless of age
How many hundreds of millions have they been given with the recent subsidies whilst posting mammoth profits. (edited)
Ofgem continue to be a utter useless joke.
Tale old as time.
could you share any evidence that backs up the claim that 99% are requested by the users? because I'm gonna call porkies on that straight away.
Also could you explain what you mean by "the lesser burden of society" - you know people have said things like this through history when killing the weak and infirm or the disabled or those with mental illness etc... is this the kind of society you want to live in? (edited)
So they can still kick your door in 3 years after you've died.
I'd genuinely like a list of all companies known for using bailiffs and avoid giving them any money.
What has become of this once great country!
Options could be given like paying weekly and staying on credit to help manage money, with the agreement that if payments are missed they will be switched to prepayment.
Don't get me wrong, credit meters are better for the majority of people but for some it is obvious that it will trap them in debt in the medium term versus prepayment where it is much easier to budget. (edited)
Then electricity gets more expensive the more you use. On a tier based system. This also helps out small businesses.
So for example a bloke from Southampton and his family who move to Yorkshire part time and live in a mansion, that has had a new £400k outside swimming pool put in would pay considerably more per kWh than someone in a 3bed semi on average per kW.
Fancy that
The profiteering by these companies has been staggering
Basically lets say I topped up £25 at once, even if that made me £23 in credit at that point, Scottish Power's computers would flag me as "underpaying" and I would get meter readers at my door to do "maintenance" and when I moved which was at least 5 times in 6 years I had the same issue each time in that I got a bill for underpaid electric, for a pre pay meter! When I queried it I was told "maybe it was debt from a previous meter or address" and I said no, basically they told me the meter only takes off the weekly charge each time you topped up which was a lie as even if I turned everything off at fuse box and was away for a week or more the meter went down at exactly the rate of the daily charge x amount of days.
All utility companies though also said I was underpaying as I "should be using" X amount of units based on say a 2 bedroom property means there must be a family there, being a family meant you used the washing machine multiple times a day etc,
I was a single guy who took a short shower each day and used washing machine once a week.
And thats before we get into clearing this alleged debt, or like what happened to a friend the previous tenant never used their boiler in the 4 years they lived there so it had 4 years worth of "debt" aka standing charges and utility company tried to say my friend was not only responsible they were transferring the debt to his name and he had to clear it to get the boiler turned back on.
No issue like that on a credit meter.
and the fact that we are running at a what is it 16 billion profit for want of the correct word (its late) that they refuse to spend on looking after all those shafted out of accommodation etc , just really makes me feel so sick and powerless.
If the majority didn't have their heads buried in the sand its been very clear to see for over a decade.......its just now its hurting in one's pocket is the awaking happening.
In the last major financial crisis we had......who actually went to prison for the fraud, mishandling, mis-management etc.......problems we have right now are largely a result of that behaviour.......nothings changed since then......everything just got exponentially worse and has compounded to present day problems/mess. (edited)