ENERGY COSTS
Vulnerable smart meter customers could be forced onto prepayment as energy bills soar
Thousands of vulnerable people could see their smart meters automatically converted into prepayment meters this winter as the energy price cap rises, charities have warned.
Energy firms can switch the meter type remotely, and the speed leaves little time for debt advisers to intervene. It also increases the chance of “inappropriate” conversions forced onto vulnerable people, Richard Lane of debt advice charity StepChange said.
Those affected will be forced to pay higher energy costs, while a larger number of prepayment meters is expected to lead to more “self disconnection” – where households run out of energy entirely.
The energy price cap is set to soar again in October, and by January could be as high as £4,266.48. That’s compared to £1,227 earlier this year.
Energy suppliers can switch their customers onto prepayment when they fall into debt with the company, using prepayment as a way to recoup the money.
Ordinarily, they have to obtain a warrant to do this, and last month The Big Issue revealed 187,000 such warrants have been granted in 2022 alone. But that’s not the case with smart meters, which have been touted as a means of improving energy efficiency to help customers track their spending.
Debt and energy charities are now calling on Ofgem to take action.
“We’re calling for a moratorium on PPM installations due to debt during this crisis, particularly for consumers where there is clear vulnerability or low income. We are also calling for Ofgem
