No consumer should be forced into having a pre-pay energy meter

2 February 2023, 18:29

By Dean Dunham

@DeanDunham

Government must take immediate and decisive action in relation to pre-pay energy meters - here’s why.

As energy firms announce bumper profits during the energy cost crisis a more shady side of the industry has started to emerge where providers force or trick consumers into having a pre-paid meter and then use this as a mechanism to ensure past debts are paid and future supplies are paid in advance at a higher rate.

Every week I answer LBC listeners legal questions in relation to a wide range of consumer issues.

Over the past few months lots of those questions have involved issues with energy providers and I’ve heard countless horror stories about pre pay meters.

Listeners have told me:

• They have been misled into having a pre-payment meter
• They had no idea their supply was going to be more expensive with a pre-pay meter
• Following installation of a pre-pay meter they have been cut off for being in arrears
• When topping up a newly installed pre-pay meter the funds were allocated to past debts leaving them with no funds for electricity

Listen to the Consumer Hour with Dean Dunham on Global Player

Is this legal?

Misleading consumers NO, but forcing a consumer who has energy arrears to have a pre-payment meter unfortunately yes.

Government has thankfully latched on to the issue and agrees this practice must stop but action is better than words.

The business secretary, Grant Shapps, has written to suppliers demanding they stop forcibly moving households on to more expensive pre-paid energy tariffs.

Mr Shapps said: “Suppliers are clearly jumping the gun and moving at-risk customers on to prepayment meters before offering them the support they are entitled to – I simply cannot believe that every possible alternative has been exhausted in all these cases."

This is a step in the right direction but is not enough. Instead this barbaric approach adopted by energy providers must be stopped.

It was also positive news to hear today that British Gas has announced that it will no longer apply for warrants to force entry to people’s homes to install pre-pay meters.

I urge other providers to follow suit and for urgent changes to be implemented so that it becomes unlawful to:

• Force entry into people’s homes to install a pre-pay meter
• Charge more to pre-pay meter customers.

If you have an issue with a pre-pay meter or if your provider is trying to force one of these money machines on you, give me a call on the LBC Consumer Hour this Friday at 9pm.