Pre-payment meters & debt

[CSJ2K]

This is not a question, more advice really. Sorry if I've repeated someone but had a quick scan and can't see anything.

One of my clients received a bill regarding their pre-payment meter for around £200. My client contacted Npower who told her the debt had arisen due to a price increase that hadn't been updated on her meter!

I wrote to Npower and told them I had advised my client not to pay. I expressed the opinion that if they had failed to make the change to the meter, this was their problem. I also pointed out that it was ridiculous that a system mainly used for vulnerable people should have a flaw that could accrue a debt they didn't even know about!

I received a phone call within three days saying they would write it off (I of course asked for this in writing).

Another issue I come across regularly is when people move in to a property where a pre-payment meter is already fitted. It is vital that you DO NOT use a card/key you may find in the property! If the previous occupant has a debt on the meter, you will end up paying it if you use that card/key. You should call the energy supplier and ask for a new card. An engineer visit will be organised to reset the meter.

[noggsy]

Nice one CS, but this is not always the case, unfortunately, its seems to be the people that shout loudest get the results. It is well known throughout the business that this happens but rarely does it result in a right-off. Invariably when the Engineer does call to reset the meter he will set a debt also. This is also now negated as all new meters fitted are key meters which can be updated when you buy credit.
As far as the card/key situation may I endorse that you must use your own key otherwise the supplier will "flag" a query which will result in a debt to you, which they will seek payment for, irrespective of the reasons !

[Mrs.Wifey]

Originally Posted by CSJ2K

This is not a question, more advice really. Sorry if I've repeated someone but had a quick scan and can't see anything.

One of my clients received a bill regarding their pre-payment meter for around £200. My client contacted Npower who told her the debt had arisen due to a price increase that hadn't been updated on her meter!

I wrote to Npower and told them I had advised my client not to pay. I expressed the opinion that if they had failed to make the change to the meter, this was their problem. I also pointed out that it was ridiculous that a system mainly used for vulnerable people should have a flaw that could accrue a debt they didn't even know about!

I received a phone call within three days saying they would write it off (I of course asked for this in writing).

Another issue I come across regularly is when people move in to a property where a pre-payment meter is already fitted. It is vital that you DO NOT use a card/key you may find in the property! If the previous occupant has a debt on the meter, you will end up paying it if you use that card/key. You should call the energy supplier and ask for a new card. An engineer visit will be organised to reset the meter.

Hi and congrats for succeeding at something that alot of people haven't been able to do!

I've personally butted heads with E.on over the wretched pre-payment meter I had at my previous property. I was never informed that my meter needed to be updated and when I moved out 8 months later, I had a £140 debt. I called and had it out with the customer service and she apologised, but offered little other consolation and I was put on a £3 a week payment plan. To which I didn't pay. I had my sister-in-law call them back up pretending to be me (as she's terribly intimidating) and she tried to get it written off and managed to get £50 written off instead (they told her that they were no longer allowed to write off debt for pre-payment meters). They also set up a £3 a week payment plan to clear the debt (which I did not pay .....again). I then get this snotty phone call from an in-house collecter a few months later trying to tell ME of my irresponsibility of not paying...that I'd had plenty of time to pay blah blah blah. I have to admit, I lost my rag and let her have it with both barrels over the stupidity of the entire situation. I told her that the debt was NOT my responsibility, it was theirs and IF I decide to pay, I'll pay it when I **** well please. I still haven't paid. And it's been 11 months since I last had any contact with them over that particular debt. I doubt it's been written off and I'm sure I'll eventually receive another demand for it, but that's one debt I won't lose any sleep over.

Rant over. Sorry :o

[dunloadin]

Many companies do this to people, one that dosent is British Gas, they stopped doing this about a year ago and write off the outstanding debt. It only happens with token meters as the tarriffs on key meters can be sent down to the keys as they change.

I'm surprised no-one has challenged these bills. As you have paid the asking price (it's on the meter), why pay more. If you went to a shop and bought a can of coke for 50p that had a special offer price of 35p on the packaging the shop owner would be in breach of consumer law; why should it be any different for the utility companies? Surely if they can't be arrsed to change the price thats their problem, not yours.

[CSJ2K]

Good on you for sticking to your guns Mrs Wifey. I'm off work for this week but when I return I'll submit a copy of the letter I sent. I would recommend ceasing telephone contact with them and keeping everything in writing.

Originally Posted by Mrs.Wifey

Hi and congrats for succeeding at something that alot of people haven't been able to do!

I've personally butted heads with E.on over the wretched pre-payment meter I had at my previous property. I was never informed that my meter needed to be updated and when I moved out 8 months later, I had a £140 debt. I called and had it out with the customer service and she apologised, but offered little other consolation and I was put on a £3 a week payment plan. To which I didn't pay. I had my sister-in-law call them back up pretending to be me (as she's terribly intimidating) and she tried to get it written off and managed to get £50 written off instead (they told her that they were no longer allowed to write off debt for pre-payment meters). They also set up a £3 a week payment plan to clear the debt (which I did not pay .....again). I then get this snotty phone call from an in-house collecter a few months later trying to tell ME of my irresponsibility of not paying...that I'd had plenty of time to pay blah blah blah. I have to admit, I lost my rag and let her have it with both barrels over the stupidity of the entire situation. I told her that the debt was NOT my responsibility, it was theirs and IF I decide to pay, I'll pay it when I **** well please. I still haven't paid. And it's been 11 months since I last had any contact with them over that particular debt. I doubt it's been written off and I'm sure I'll eventually receive another demand for it, but that's one debt I won't lose any sleep over.

Rant over. Sorry :o

[buzby]

Draw a parallel to this - a householder with a standard meter uses if for the 7 years they live at the property. They pay all bills on time, but on selling the house the new owner discovers the meter is under-recording consumption, this resulted in a recalculated bill to the previous owner of £2,500. The owner remains legally liable to pay - so why shouldn't a pre-pay meter owner similarly have this responsibility?

[CSJ2K]

I understand your point about legality but my argument is based more on morality.

If I was the householder I would have to argue that the proper working of the meter is the responsibility of the supplier and that I should not suffer financial detriment due to something beyond my control or knowledge, regardless of what the law says.

There is however a BIG difference. As I mentioned, pre-payment meters are often fitted for vulnerable people as a method of repaying a debt and as a way of avoiding accumulation of debt. With this said it would be grossly unfair and immoral for a company to allow a 'stealth' debt to accumulate.

[noggsy]

I agree with what you are saying CS and in an ideal world morality would overide legality, but the fact of life is that the Power Companies will persue the debt and in my experience it is very rare they will write it off, sometimes it is a lottery, in that there are some understanding people at the call centres who will try to help, unfortunately they tend to be in the minority.

[conradsfate]

could someone help me with this. i'm with british gas. token meter and don't have any debts with them. but i was just wondering why - that everytime i buy some credit and pop it in for my gas it says so much for gas and so much for debt. i dont owe a debt. ive been here 3 years and at my old property it was n-power.
the amounts vary only about 14p up to 1.22p

could it be a standing charge.

[noggsy]

It could be, have you checked your meter to see if there is any debt logged on it ?

[dunloadin]

conradsfate, cycle through the display on your meter; if theres any debt on the meter it will be displayed as 'total debt', along with the amount to be paid back each week. If these figures are zero then the debt is probably due to you using the emergency credit.

[scotsdamo]

Hi Guys

This is my first post on here and may already have been mentioned. Did you know that a prepayment meter (meant for a poorer client) actually costs you more. I have only just discovered this recently. up until a few years ago we couldnt really afford that bill that would come in every quarter so this appeared to be the best way. anyway we got fed up with it running out at the most inconvient times so contacted scottish power to arrange changing to a normal meter. Imagine our surprise to be told that we were £53 in debt ????? i asked how this could be as we prepaid only to be told well if you use emergency credit that would be why and until debt was cleared we couldnt change. ok fair enough to a point until a week or 2 later a staement comes in with us in credit. I am now in the process of of arranging a change but also expressing my displeasure. If you can avoid being on one of these meters then do so cos they will just screw every penny out of you they can as always in britain its look after the rich and punish the poor for having the cheek to earn minimum wage.

Rant over

[CSJ2K]

Unfortunately things can go wrong. When working correctly however they are a good way of getting out of debt but also and most importantly avoiding accumulation of further debts. (As I said, when they work as they should).

The other option of dealing with fuel debt if you are receiving benefits is 'Fuel Direct' which again is far from perfect but payments are taken directly from your benefits.