Prepayment meters, the hopeful end of a energy nightmare.

Fri,3 February 2023
News Housing Money
Pre-payment meters have hit the headlines again today and finally for the right reason.

Yesterday the Times exposed what many disability campaigners already knew, that energy firms and  their contractors  together with the courts and bailiffs have been guilty of duplicitous, underhand, and even aggressive behaviour over forced installation of Pre-payment meters in the homes of Disabled people and those who are financially vulnerable. The Times exposure led to instant action by energy firms to pause their programs of warrant-based installations, claiming ignorance and promising to do better. Today, it also led to the regulator, Ofgem, requiring a total suspension pending a review.    But a pause is not good enough, only an outright ban is morally and ethically the right thing to do.

I was at an event in London yesterday hosted by the Mayor Sadiq Khan where pre-payyment meters were discussed with guest Martin Lewis, when the news filtered through the assembled audience that the Times story had dropped and that at last, energy firms were on the back foot. I was there to explain that many Disabled people use more energy than other households due to the extent of essential medical and independent living equipment in their homes, equipment that maintains and prolongs a healthy existence. I also touched on why Disabled individuals were terrified by having pre-payment meters in their homes and that many were “self-disconnecting” as they could not afford to top them up. In the end my question remained unanswered as the outrage from the press story peppered and prolonged the on-stage discussion.

For context, Prepayment meters were forcibly installed in homes by energy firms via court warrants to claw back fuel debt from consumers who were already struggling with excessive energy bills. The aim of seeking a ban to this practice from many campaigning groups including the Disability Poverty Campaign Group (headed by a number of Disabled People’s led Organisations and allies) has been a long and unrewarding one. We have written to numerous incumbent prime ministers, asked disability campaigners to write to parliamentarians, met with Ofgem, and trotted ourselves out across various media outlets with case studies, facts and more, all the while as the warrants increased and the regulator seemed indifferent and somewhat discombobulated by the firms’ actions under their watch.

However, be it a campaign like ours or another, the fact remains that stealth actions by diligent journalists have finally enacted a response and spread utility guilt like marmite all over the airwaves. The important thing is where and what do we do now? What do these firms who have been seemingly content to disregard individuals’ life situations do in response now their underhanded tactics are media and political priorities? Well of course, we heard today that Ofgem has finally stepped in and asked suppliers to suspend the forced installation of prepayment meters and review their processes for dealing with customers who have fallen into arrears.

This sudden epiphany has been forced by the need to maintain public confidence. Ofgem has reacted suddenly after years of inertia, having been caught out for their seemingly weak control over utility firms. They are now the focus of public and political anger that has been ignited by truly terrible headlines. The energy firms themselves, particularly the CEOs have been quick to deny any knowledge of customer mistreatment and have trotted out the usual lines of support to any vulnerable customer, saying they of course knew nothing of the attitude of their staff and contractors. It is simply astonishing for any energy supplier not to know about their own contractors' behaviour, especially where they are entering the homes of Disabled people, older people and those who are financially vulnerable, so again, what do we do now?

As part of a campaigning group, we were already armed with responses should this point ever arrive, and thankfully it has. We should not tolerate living in a society where people who are struggling to pay energy bills are further penalised. Energy debt should be paid back through agreed payment plans. Many countries do not have pre-payment meters. Every single PPM that has been installed under warrant should now be removed and conversations should happen with customers about their financial situation and requirements, no one’s health should be left in the hands of a machine. There should also be a social tariff for Disabled and vulnerable customers, having regard to their need for energy and their ability to pay. There should also be a review of benefit levels, as it is patently obvious that they do not enable dignified lives. 

Energy firms must dramatically change the ways in which they wield their power. For too long these utilities have not practiced what they preached when it comes to the protection of vulnerable customers. Things like the priority services register seem not fit for purpose if families upon it have had a bailiff descend on them, wielding a warrant that has not been even remotely scrutinised by any court. The Court system must admit that it has let consumers down.

Company profit should not be based on the misery of customers especially when they are being buffeted from all angles by the cost-of-living crisis. It seems the thirst for revenue and profit has superseded ethics and humanity. Companies, politicians, and the regulator must take the opportunity to make the pause in installations, a permanent one,  and lessons must be learnt that Disabled people and those who are financially vulnerable are not chattel and are not there to drive profit and shareholder value. This needs to be the beginning of the end for pre-payment meters (including switching over smart meters to pre-payment) and the end of the beginning of finally getting better and fairer treatment in place for Disabled and other customers.