What is a prepayment meter?
The scheme is the ultimate push to get the remaining £130 million in help to those that want it. In London alone, more than 650,000 energy vouchers are yet to be used.
Those with prepayment meters have till June 30 to say and use their power help vouchers, in the event that they haven’t achieved so already.
The British energy market regulator Ofgem has revealed that every one UK family suppliers have agreed to a brand new code of follow. This consists of a ban on forcibly installing prepayment meters in the homes of people over the age of 85.
The news comes shortly after Ofgem modified the foundations in order that power companies are solely capable of force-fit prepayment meters in the event that they stick with a set of voluntary restrictions, together with contacting the shopper no less than 10 occasions and finishing a “welfare visit”, the Press Association (PA) experiences.
Plus, suppliers must keep away from compelled installations the place a “continuous supply” of power is required for well being causes, resembling for the terminally sick, and employees members must put on physique cameras and audio tools.
The change in rules came after an investigation revealed that debt collectors had forcibly entered houses to put in prepayment meters, regardless of guidelines that beforehand specified they shouldn’t be positioned within the houses of susceptible prospects.
But what even are prepayment power meters? Here is all the pieces it is advisable to know.
What are prepayment power meters?
Prepayment meters are also called pay-as-you-go meters and they’re a typical technique to pay energy bills.
A meter is first put in within the dwelling after which an individual can prime up their credit score at an area store or on-line. This permits individuals to purchase their power in items earlier than they use it.
Prepayment meters are dearer to function than different sorts of meters, with cheaper tariffs not all the time accessible.
All UK family power suppliers have agreed to a ban on forcibly putting in prepayment meters within the houses of individuals over 85
/ Nicholas T Ansell / PA WireWhat sorts of prepayment meters are there and the way do they work?
There are numerous sorts of prepayment meters. These embody key meters, smart-card meters, and coin-operated meters. A key meter makes use of an digital key, generally known as a token, which accommodates the shopper’s tariff data.
Meanwhile, a smart-card meter has a card that sends your newest data via to the provider when topped up. Coin-operated meters, as soon as commonplace, are uncommon these days. As the title suggests, they’re topped up with laborious forex, resembling pound cash.
What are the professionals of prepayment meters?
They generally is a helpful manner of protecting on prime of your power use and managing your family price range. Just like a pay-as-you-go cell phone, it’s an easy manner of selecting when and tips on how to spend your cash. Prepaying in your power enables you to pay small quantities usually, and it means you’ll by no means overpay.
Like a regular meter, you may nonetheless swap to a less expensive tariff, though there tends to be much less alternative of suppliers and tariffs. Smart prepayment meters can be found.
What are the cons of prepayment meters?
Prepayment meters could be inconvenient if it is advisable to exit to prime up keys and good playing cards. If you may’t attain a store to prime up, you possibly can run out of credit score and your power will probably be switched off. What’s extra, in the event you lose your card or key, it may be a trouble getting a brief one organized.
You ought to keep away from having a prepayment meter if operating out of credit score and having no gas or electricity would trigger you a significant issue, the patron assist organisation Citizens’ Advice says. For instance, when you’ve got a long-term well being situation, incapacity, medical tools that wouldn’t work with out energy, or younger youngsters.
Prepayment meters are additionally dearer than commonplace meters, and there are fewer tariff selections. The finest power offers available on the market aren’t often accessible to prepayment prospects.
Note additionally that prepayment tariffs have a standing cost (often 25p-30p a day), in the identical manner that credit score tariffs do. This cost have to be paid no matter whether or not you utilize any fuel or electrical energy on any given day, so it is advisable to have credit score in your meter to account for it.
If you owe the price of the standing cost, will probably be deducted subsequent time you prime up your meter.
Are prepayment meters dearer than commonplace meters?
Yes, they’re. There could also be important financial savings available by switching from a prepayment meter and tariff to a credit score meter, the place you pay in arrears by month-to-month direct debit. However, lots of the cheaper offers have been suspended within the present local weather, as a result of power disaster partly brought on by the warfare in Ukraine.
Is it attainable to change prepayment meter suppliers?
In common, sure. As lengthy as you don’t owe greater than £500 in your fuel and £500 in your electrical energy, you may switch to a unique provider. Note that your debt will probably be transferred to your new provider and you’ll nonetheless must pay it off.
Can you swap from a prepayment meter to a regular meter?
Many suppliers enable prospects to maneuver from a prepayment meter to a regular meter freed from cost. Others could cost you to vary the meter, so test first.
To transfer off prepay, suppliers usually require you to have paid any excellent debt in your power account. They may even test your credit score rating. Bear in thoughts that, if you’re renting, you will want your landlord’s permission earlier than altering the meter.
Could a provider drive you to maneuver to a prepayment meter?
If you might be struggling to pay your power invoice and get into debt together with your provider, or if you’re having issue paying an agreed compensation plan, your provider could recommend you have got a prepayment meter put in.
If you refuse this, and in the event you fail to pay again your money owed, a provider can apply to the court docket and set up a prepayment meter underneath a warrant as a final resort.
What in case your prepayment meter is defective?
If the display is clean or displaying a message resembling ‘error’, ‘call help’, or ‘battery’, there’s in all probability a fault with the meter, in keeping with Citizens’ Advice. Tell your provider straightaway or you possibly can be left with no power.
They should ship somebody out to restore or change the meter — or repair it remotely — inside three hours on a working day, or 4 hours on a non-working day. If this doesn’t occur, they need to pay you £30 compensation.
FAQs about prepayment meters
How do you are taking a prepayment meter studying?
Meters are available a wide range of guises, from ones with dials to the most recent digital read-outs. Some could require the person to insert a prepayment key to get to the specified studying. Suppliers usually embody data on tips on how to learn a specific model of meter on their web sites. With digital shows, it’s often a case of scrolling via the choices till you come to the studying you’re eager about.
What if the home you’re transferring to has a prepayment meter?
You ought to contact the provider straightaway. Try to keep away from accessing the meter with a key or card or including any cash to it. Otherwise, you probably danger paying additional for the money owed of the individuals who lived on the property earlier than you. Where it is advisable to add cash to the meter, inform the provider. The provider ought to take off any money owed not run up by you, provide you with a brand new prepayment key or card (relying on the kind of meter), and ship you details about how the meter works.
What must you do in the event you lose your prepayment meter key?
Get in contact together with your provider as quickly as attainable so it could ship you a brand new one — although this may increasingly take a number of days. The first substitute will in all probability be free however, after that, anticipate to be charged, £5 for instance. If it’s a top-up card that’s gone lacking, it could be attainable to select up a brand new one from a PayPoint outlet.
Is there a prepayment meter cap?
Ofgem units a restrict on the quantity that suppliers can cost sure customers for a unit of power. It does this through the default tariff cap and it covers two sorts of customers: those that are on the default (or commonplace variable) tariff of their provider, and people who use a prepayment meter to pay for his or her power.