A growing number of families are remotely switching their smart energy meters to prepayment meters, according to the energy regulator.
Suppliers can use the technology to switch clients without their consent to a payment method that is frequently more expensive.
Customers that need to refuel run the danger of running out of energy.
Ofgem stated that some customers were left without electricity for days or perhaps weeks, and a trade group stated that “mistakes” were made.
We won’t know until the end of the year how many customers were moved to prepayment meters,” said Dhara Vyas, the director of Energy UK, which represents tens of thousands of suppliers.
Samantha Pierre-Joseph, a resident of North London, did not realize her meter had been changed until she observed the flashing meter display in her kitchen.
Samantha contests the fact that she owes over £1,600 to her new supplier because she meticulously monitored her usage with a smart meter. But soon the situation changed.
She had been transferred to a prepayment meter without warning. It is astonishing.
“Disconnection via the back entrance”
Once a smart meter has been placed, it is significantly easier for a supplier to switch a client to prepay mode with the touch of a button, as opposed to submitting a warrant application and installing a physical box.
Energy firms are required by Ofgem’s rules to consult with customers before shifting them to a prepayment meter, but the regulator expressed concern that this was not always occurring.
Suppliers may install prepayment meters for customers who are unable to pay their bills on time, stating that it gives them greater control over the amount and frequency of energy payments.
In contrast, Rosi Avis, the director of the Manchester branch of Citizens Advice, described remote switching as “disconnection through the back door.”
“If clients are ignorant that they have a pre-payment meter, they may not fill up and are therefore more likely to self-disconnect,” she stated.
Citizens Advice informed that thus far in 2022, about 500 people have contacted them in distress after being forced to switch to prepayment, a 158% rise from 2021.
It is estimated that 450,000 people will be forced onto a prepayment plan this winter, and of them, 180,000 will be done remotely via a smart meter.
I was informed through text.
Kelly from south London, who did not want us to publish her last name, was an EDF direct debit customer when her monthly bills increased from £200 to almost £430 due to price increases.
The mother of two, who works part-time and receives £320 per month in Universal Credit, soon accumulated almost £1,000 in debt.
She has been phoning EDF intermittently since January to resolve the issue. Then I received a letter stating that they would switch me to prepayment.
Kelly attempted to contact her supplier once again and was told that communication has been poor and her case file has not been adequately updated.
In October, she received a text message informing her that she was now on a prepayment plan. “Suddenly, I had only £3 left on my energy bill till payday. I was very miserable.”
EDF informed that the transition to a prepayment meter was a “last resort” following significant efforts to discuss support and reach an agreement with the customer.
A spokesman added, “In this circumstance, transferring a customer to a pay-as-you-go plan will prevent them from accruing debt at an unmanageable rate and push the customer to regain control of their ongoing energy payments.”
According to Ofgem data, more than 152,000 customers with smart meters were remotely moved to more expensive prepayment plans for gas or electricity last year. In 2020, this was 95,000 meters shorter.
Ofgem stated that approximately 60,000 families have switched energy suppliers in the past three months.
The tremendous increase in energy costs makes it likely that the trend of remote switching will continue.
