The government has stated that energy providers should stop requiring vulnerable households to install prepayment meters.
Grant Shapps, the secretary of state for business, said that he would “name and shame” suppliers who did “not nearly enough” for vulnerable consumers.
Citizens Advice, which seeks to prohibit forced remote switching, has demanded “additional protection” for consumers.
When they are unable to afford meter top-ups, an increasing number of individuals are left without heat and light.
In a letter to energy suppliers, Mr. Shapps explained that his new proposal was “part of an effort to strengthen the transparency around the installation of prepayment meters.”
Mr. Shapps stated that energy companies should do more to assist customers who are struggling to pay their bills. Such as offering credit or debt counseling.
Crackdown on energy suppliers
He demanded the “immediate disclosure” of the recent inquiry into vulnerable clients conducted by energy suppliers. Also the release of information regarding applications made by suppliers to forcibly place meters.
However, the government will not impose a total ban due to fears of an increase in bailiff action.
Graham Stuart has requested a meeting with energy providers, the regulator Ofgem, Energy UK. Which represents the energy industry, and Citizens Advice the next week.
Audrey Risdon, age 81, was converted to a prepayment meter. Despite her inability to get to the store to reload her energy card.
Ms. Ridson, from Hampshire, was in the hospital recovering from a fall when her energy company compelled her to move to a prepayment account, despite the warnings of her son-in-law that Audrey would have difficulty topping off her meter.
Mr. Shapps stated in his letter, “Suppliers are jumping the gun by switching at-risk consumers to prepayment meters before providing them with the assistance to which they are due.”
He stated that he wants providers to “listen more empathetically” to individuals dealing with growing living expenses.
He continued, “I am profoundly troubled by accounts of people being switched against their will to prepayment meters. With some having their power cut off and being left in the dark.”
Prepayment meters spike
Gillian Cooper, head of energy policy at Citizens Advice, applauded the ideas,. Stating: “Millions of people are living in homes that are chilly, dark, and damp. Because they cannot afford to pay their utility bills. No one should be compelled to live in such a manner.”
She stated that “stronger action” must be taken by the government if suppliers do not cooperate. She also demanded “further safeguards” for those already utilizing prepayment meters.
Emma Pinchbeck, chief executive officer of Energy UK, which represents energy companies, stated that suppliers had increased support for customers over the winter through payment holidays, payment plans, and emergency credit; however, the underlying issue remained: people struggling to pay their bills due to the rising cost of living.
Ms. Pinchbeck added, “If the option to install a prepayment meter is removed – after all other options have been exhausted – then it must be acknowledged that this will lead to a significant increase in bad debt, which has already been rising sharply in recent months and is ultimately recouped from customer bills.”
When customers are unable to pay their bills, British Gas will no longer move them to prepayment meters using their smart meters.
