Prepayment meters – also known as ‘pay-as-you-go’ meters – are a common way to pay energy bills. A meter is installed in the home and topped up with credit bought either online or from a local shop. However, research has shown that many energy suppliers are force-installing prepayment meters onto consumers, many of whom are Disabled, noting that some people who can’t top up their prepayment meter will self-disconnect. For this reason, Disabled people or people in vulnerable situations shouldn’t be put onto a prepayment meter, because they can be exposed to serious harm should they go off supply. CA discovered that many households forced onto prepay had an illness or disability that is exacerbated in cold weather, such as arthritis, asthma, or cancer.
Historically households on prepayment meters spend more in winter than households on direct debit.
The research noted that having a prepayment meter fitted or being switched to prepay for debt repayment can be very upsetting and have long-lasting consequences as according to the report “Suppliers don’t always carry out the proper checks before installation of a prepayment meter and vulnerable people can be affected. For example, those with health conditions can be at huge risk from going off-supply.” Adding “There are other circumstances in which an energy supplier shouldn’t force-fit a prepayment meter, such as when someone cannot access their meter due to accessibility issues. Suppliers should carry out special checks to make sure that the person they want to move to prepay won’t be disproportionately harmed by doing so.”
Because of this CA suggested that “Prepayment meters should only be installed as a last resort but our data shows that suppliers are forcibly installing meters where it isn’t appropriate
Despite the recent cap of energy prices at £2,500 for two years under the Government’s “Energy Price Guarantee” energy bills will still increase as a typical household will see a 27% rise in energy rom £1,971 to £2,500. This means that the cap of 2,500 is double the energy price of last winter.
Dan White Policy and Campaigns officer at Disability Rights UK and one of the leads at the Disability Poverty Campaign Group said: “As much as the energy cap was welcomed the reality Is that people who use more energy than the average will pay more. Disabled people’s energy needs are higher than most as they need to run essential equipment such as hoists, ventilators, and to charge wheelchairs. Energy companies must only fit pre-payment meters as a final resort and consider the situations of the people using them. There must be checks and dialogue carried out first, suppliers must ensure they’ve tried to contact the individual concerned in multiple supportive and accessible ways about any debt. No one, especially a Disabled individual should be put in this awful and avoidable situation as winter approaches.”
To find support paying bills and managing fuel debt visit National Debtline for help or for benefits and grant information contact turn2us.
The CA report Out of the cold? Helping people on prepayment meters stay connected this winter is available from citizensadvice.org.uk.
