Saturday, 23 Nov 2024

Smart meter warning as hundreds of thousands remotely moved to expensive tariffs

Hundreds of thousands of households with smart meters have been remotely moved onto more expensive prepayment plans in the last six years, sparking outrage.

Some 350,000 homes were remotely switched in order to service debt between 2017 and 2023.

This comes as energy regulator Ofgem is preparing to redraw the rules, setting a “minimum standard” that will limit companies’ ability to force a customer to change tariff. Other campaigners are lobbying the Government to outlaw the practice entirely.

In the five years to 2021, the number of remote switches rose fivefold. That said, the rate of forced switches did drop 61 per cent last year to less than 60,000 from 152,000, according to official data.

Meanwhile, the Government is attempting to shield consumers from spiralling costs by raising the energy price cap and introducing the Energy Price Guarantee

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Providers have been attacked for using smart meters to remotely force customers onto more expensive prepayment plans without a warrant, which is necessary to enter a property and manually install one.

In response to the shocking findings, Gillian Cooper, head of energy policy at charity Citizens Advice, said: “As energy bills rocketed last year, far too many people were forced onto a prepayment meter they couldn’t afford to keep topped up – often despite clear evidence they could suffer harm if their credit ran out.

“Ofgem’s code of practice is a much-needed improvement in the protections people have against forced installations, including remote switches…These protections must be in place by winter or history could repeat itself.”

Despite the introduction of a slew of new measures to combat the problem, campaigners have called for an outright ban on the involuntary switching of customers’ metres.

he Telegraph has revealed that 

Simon Francis, coordinator of the End Fuel Poverty Coalition, told the Telegraph: “We know that the majority of smart meter switches to PPM mode take place due to debt. This highlights the need for the Government working with charities and energy firms to develop a ‘help to repay’ scheme for the nation’s surging levels of household energy debt.

“Switching a smart meter to prepayment mode without a customers’ explicit and informed consent is as good as forcing them to self-disconnect… the Government must amend the Energy Bill to ban forced switching to traditional or smart prepayment meters when the legislation comes back to the House of Commons in September.”

A spokesman for Energy UK, which represents energy firms, said: “Earlier this year, suppliers voluntarily halted prepayment meter installations under warrant – including remote switches where a smart meter is changed to prepayment mode – to review their own practices whilst Ofgem also carried out its own investigation.

“The pause remains in place until that process is concluded. When installations resume, a new Code of Practice, agreed between suppliers and Ofgem, will strengthen the process and assessments surrounding prepayment meter installations and remote switches – particularly when identifying if this may not be safe for vulnerable customers.”

She added: “Prepayment meters will remain an important way of helping customers manage their own energy costs and usage. Suppliers are required to try and prevent customers from falling further into arrears and to minimise the build of bad debt which is ultimately recouped from all customers.”

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