Category: News

Energy firms pre-payment response to Minister an insult to victims

Energy firms have only provided “half the picture” to the Secretary of State for Energy and Net Zero after the Government asked all suppliers to set out how they are supporting their customers, how many warrants to forcefully enter peoples’ homes they have applied for and how they will make up for any wrongdoing.

Data from the Warm This Winter campaign suggests that as many as two-thirds of pre-payment meter households will contain elderly people, young children or those with a disability or long term health condition.

A spokesperson for the End Fuel Poverty Coalition commented:

The energy firms are trying to pull the wool over our eyes yet again and have failed to comply with the Government’s reasonable demand for information and details of compensation they will offer wronged consumers. This is an insult to the victims of the pre-payment meters scandal.

The truth is that they have invested time, money and resources in securing almost a million court warrants against households since 2020. Even if only a fraction of those are enforced this is still too many.  [1]

Every one of those enforcements involves the energy firm breaking into someone’s home to impose on them a pre-payment meter which is more expensive for that household than direct debit. They will also charge the household for the installation.

Over the last three years, figures suggest that those on pre-payment meters may have paid hundreds of pounds more per household than other customers. [2]

Advice received by the Coalition has highlighted four areas where there might be reason for further compensation. These are in relation to possible breaches of the European Convention on Human Rights (articles 6 and 8), the Equality Act, trespass rules and breaches of contract / licence conditions. [3]

As well as compensation, campaigners have set out a five point plan which the Government must implement to address the pre-payment meter (PPM) scandal: 

  1. Move people off legacy PPMs more systematically (using data to identify PPM customers on the priority service register to move to faster smart meter rollout)
  2. Remove the premium paid by PPM and standard credit customers.
  3. Reduce standing charges for PPM customers.
  4. Address debt build up for PPM customers through a debt repayment matching scheme (funded through fines levied on energy firms for poor performance).
  5. Introduce wider reforms to make energy more affordable for PPM customers (such as introduction of a social tariff or free band of energy for all).

Calls for an inquiry into the scandal have also increased. 

In the House of Commons on Monday 6 February, Sir Robert Neill MP said that the scandal must indicate:

First, that the process itself is flawed and should not be continued and, secondly, that there must be an inquiry into not just the process itself, but the suitability of some of those who are representing the energy suppliers and Ofgem in court.

Either they gave misleading information by inadvertence or, potentially, they did so deliberately, which, on oath, amounts to perjury. That is a very serious matter which brings the court process into disrepute, and it needs to be investigated too.

ENDS

[1] Official Ministry of Justice data revealed magistrates courts granted 920,855 warrants between Jan 2020 and Dec 2022 in England and Wales. Media reports suggest around 30,000 were granted in January 2023 in England and Wales. Media report 32,000 warrants were granted in Scotland in the first ten months of 2022.

[2] This winter every PPM household overpaid by £258 on average (Citizens Advice). PPM installation cost £150 (Ofgem). Equals basic overpayment of £408.

For households who have been on a PPM before October 2022, this basic level will increase based on how many years they have been on it, but someone who has been on a PPM since 2019, has over paid around £102 compared to a DD meter (winter 2019/20 £38, winter 2020/21 £28, winter 2021/22 £32). Total of £600

2019 is the starting point because that’s when Ofgem changed the rules to make PPMs much more expensive.

[3] Indicative advice received from Leigh Day Solicitors is not a formal legal opinion, but provided to help the Coalition discuss next steps in the campaign to help victims.

Council set to become first to debate pre-payment meters scandal

Norwich City Council will become  the first local authority to formally debate the pre-payment meters scandal.

Papers for the Council meeting on 31 January include a motion lodged by councillor Lucy Galvin.

The motion calls for the Council to continue its work to support vulnerable households on pre-payment meters and to urge the central government to do more to help.

Energy Secretary Grant Shapps has recently announced that the Government will ask energy firms to abandon the forced transfer of homes onto pre-payment meters.

However, Norwich political leaders will be asked to write to the minister to express their continuing concerns about recent investigations by the media which revealed energy firms have secured almost 500,000 court warrants to install traditional pre-payment meters.

With reports suggesting that many of these court applications are approved in bulk, the Council leaders will also be asked to write to Norwich Magistrates Court to ask what processes magistrates followed prior to granting energy firms warrants of entry. 

The motion goes on to call for more information about how magistrates could be sure these households were not classed as vulnerable and what sanctions magistrates can take if it is found that energy firms did not complete vulnerability assessments on customers before applying for a warrant. 

Cllr Lucy Galvin (Nelson ward, Green Party), commented:

Pre-payment meters could cost customers in excess of £200 more for their energy this winter and so the Council must use all communications methods at its disposal to explain, inform and continue to underline to residents that they do not have to accept a prepayment meter.

Council resources are stretched, but we also need to make extra attempts to ascertain which city council tenants have prepayment meters, especially those who might be at extra risk of being cut off, and monitor them to offer assistance, for example through housing officer and other support.

A spokesperson for the End Fuel Poverty Coalition, commented:

3.2m pre-payment customers have been cut off from keeping themselves warm and sadly it is falling to councils to pick up the pieces caused by the delays in central Government action on this issue and the inadequate nature of support for vulnerable people.

Figures for the Warm this Winter campaign found that 64% of pre-payment meter customers are vulnerable, with 51% having health conditions or disabilities.

A third are now living in cold, damp homes posing a health risk to themselves and their families.

The fact is that none of these vulnerable customers should be on pre-payment meters in the first place.

The End Fuel Poverty Coalition continues to call for a full ban on the forced transfer of customers to all kinds of pre-payment meters and a Government inquiry into energy firms practices around pre-payment meters. 

Other councillors wanting to use a copy of the motion to tailor to their own council area can find this online.

Government issues cease and desist order on pre-payment meters

The Government has finally responded to the long-running campaign to ban the forced transfer of homes onto pre-payment meters.

The weekend has seen further reports about the “murky” court process which leads to warrants being issued in a kangaroo court process. And in  media briefings on Sunday, the Secretary of State, Grant Shapps MP has set out steps to tackle the issue.

These include a call for suppliers to voluntarily end forced prepayment switching.

A spokesperson for the End Fuel Poverty Coalition commented:
The Government’s cease and desist order to energy firms is a welcome move, but falls short of the full ban on the forced transfer of homes onto pre-payment meters which we need to see to protect the most vulnerable.
We also need to ensure that this voluntary approach covers the millions of people on smart meters, who must never be switched onto pre-payment mode without their active, informed consent.
Recent revelations about the role of the courts have also been left unanswered.
We need a full investigation to get to the bottom of the scandal quickly and ensure that if mistakes have been made, that those responsible are held to account and those that suffered are compensated.
The full detail of the Government plan is yet to be confirmed with Sky News reporting the Government will meet with Ofgem, energy suppliers and an advice charity next week.
Image: Shutterstock

Millions of energy customers hit by 7.6% hidden price hike

Customers on popular electricity energy tariffs saw their bills shoot up on 1 January 2023 according to new data released today. [1]

The figures, from Future Energy Associates and reported by the BBC, found average annual rises of £116 for electricity-only Economy 7 tariffs, revealing an 7.6% increase.

The result is that Economy 7 users now pay 46% more than other electricity tariffs (an average of £464 per household, per year, although many electricity-only households use significantly more than an average household). [2]

Standard credit customers also saw their electricity bills increase, while there was variation in changes of unit rates for those on direct debit and prepayment meters.

Compared to those customers on dual fuel tariffs, electricity rates are now 2% more expensive for electricity-only customers.

With 2.1m households only using electricity for their heating, many are struggling to stay warm this winter. [3]

Campaigners are now calling for the Government to extend the “alternative fuel payment” of £200 to all households on electricity only tariffs and commit to roll out reforms to the energy pricing arrangements as soon as possible.

Clement Attwood from Future Energy Associates commented:

It is a little known fact that it is actually up to the supplier to determine rates for some tariffs that are not explicitly capped by the current Energy Price Guarantee rate.

This has caused the average electrical Economy 7 tariff to be more expensive than the average active electrical constant rate tariff. We also saw a higher level of variation between dual fuel and electricity-only tariffs than we expected, which will hit those on the margins of fuel poverty the hardest.

Price variations similarly do occur by region and certain regions consistently have more expensive tariffs.

Tessa Khan, Director of Uplift which is part of the Warm This Winter campaign, commented:

As the growth of cheap UK renewables drives down the cost of generating electricity, energy firms should be lowering the rates they charge. The government needs to urgently get on with reforming energy pricing, as well as ramping up the development of homegrown renewable energy, so that consumers can benefit from cheaper, clean energy now and in winters to come.

One Economy 7 customer, Jonathan Bean from Buckinghamshire saw his Scottish Power bills jump by 13%. He commented:

I’m already paying three times more for my heating and hot water than those with gas or oil.  Now yet more price increases have come in, whilst support payments are being cut.

My son and I will literally freeze this winter, and next.

A spokesperson for the End Fuel Poverty Coalition commented:

Millions of people have been forced into deeper levels of hardship this winter due to this price hike. This will lead to people living in cold damp homes which can cause significant health complications, which only puts more pressure on the NHS.

It is completely unreasonable that those customers on Economy 7 tariffs are paying significantly more for their electricity and also receiving significantly less support with their bills from the Government.

Ruth London from Fuel Poverty Action said:

There is simply no justice in the energy pricing system. These prices for Economy 7 and the costs of all-electric homes are a scandal, along with imposition of prepayment meters, and high standing charges, and the way people on District Heating networks are left out of all protection. Not to mention ill-repaired housing, bad insulation, and damp.

Again and again the people who pay most are those who have least to begin with. We need Energy For All – it is not a luxury, it’s a right.

ENDS

Graphic: Shutterstock

[1]  Future Energy Associates are energy data specialists and software developers, providing retail tariff data and services to the government, private and third sector. Tariffscan, their tariff monitoring platform covers the whole domestic retail market across more than 50 suppliers. Updated daily, Tariffscan is provided through a dashboard and modern API giving users direct access to the latest tariff rates and insight. For more information on Future Energy Associates, visit https://www.futureenergy.associates/

The increases seen are largely due to EDF and Scottish Power raising Economy 7 rates. A standout example would be the EDF tariff where the most expensive economy 7 tariff is £598 more expensive than its equivalent constant rate electrical tariff.

3.3m households were on Economy 7 tariffs in 2021 in England alone (LG Inform / BEIS data: https://lginform.local.gov.uk/reports/lgastandard?mod-metric=3785&mod-period=2&mod-area=E92000001&mod-type=namedComparisonGroup&mod-group=AllSingleTierAndCountyLaInCountry_England ). The BBC report the figure at 2.5m.

[2] Based on ofgem’s consumption figures. Source: https://www.ofgem.gov.uk/energy-advice-households/average-gas-and-electricity-use-explained

[3] 2.1m households figure from ONS in its latest report on the census data: https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/census2021howhomesareheatedinyourarea/2023-01-05

 

Over 1,000 dead in December 2022 due to cold homes

Over 1,000 people died in England as a result of living in cold damp homes in December 2022. [1]

Based on new analysis by the End Fuel Poverty Coalition of official data for December 2022, the levels of excess winter deaths caused by cold homes exceeded those of December 2021 and were similar in level to the Covid-pandemic-affected data of December 2020.

ITV News have reported the figures showing that for one week in December 2022 excess deaths exceeded the levels seen in December 2020.

In total there were 1,047 excess winter deaths caused by living in cold damp homes in England in December 2022, this is up from 768 in December 2021. In December 2020 there were 1,518.

Over the course of the whole of winter 2021/22 there were 2,731 excess winter deaths in England caused by living in cold damp homes. [2]

Figures calculated by the Coalition using official government data (including that from devolved statistical bodies), puts the total excess winter deaths in the UK for winter 2021/22 at 15,069. [3]

3,240 of these were as a result of living in cold conditions.

Over the last ten years, the average number of deaths each winter in the UK caused by cold damp homes now stands at 7,409.

The figures come as members of the National Pensioners’ Convention (NPC) and Fuel Poverty Action, backed by the Warm This Winter campaign, held a minute’s silence and funeral march in memory of those who have died.

The demonstration follows on from a day of action on fuel poverty co-ordinated by the Warm This Winter campaign which saw events take place up and down the country in December 2022. Further “Warm Up” protests are being organised for Saturday 21st January by Fuel Poverty Action.

And amid the fears about the health risks of forced switching to prepayment meters, more than 91,000 people have signed a petition, launched by campaign group 38 Degrees, calling on energy suppliers to end the practice.

On Wednesday, more than 1,700 people also sent personal messages via 38 Degrees to the CEOs of their energy company, urging them to end forced transfer for good.

A spokesperson for the End Fuel Poverty Coalition, which is also part of the Warm This Winter campaign, commented:

The energy bills crisis has its roots in Westminster and the Government’s failure over decades to help us insulate our homes and secure a renewable-led energy grid.

The cost of this failure is now being felt by the elderly, disabled, those with health conditions and young families. Even in mild winters, we see huge levels of excess winter deaths caused by living in cold damp homes which put our country to shame.

We need urgent additional financial support for the most vulnerable this winter and next and a significant ramping up of insulation and energy efficiency schemes.

NPC General Secretary Jan Shortt said:

It is shameful that anyone should die from cold related illness in this country. But we fear that the rocketing cost of living, rampant energy prices, and the disastrous crisis in the NHS and social care will see tens of thousands more die in this way.

It’s time the government took action to end this horrific annual cull of our oldest and most vulnerable.

Ruth London from Fuel Poverty Action added:

A large part of the crisis has been caused by energy firms forcing people onto prepayment meters. Many people rely on energy to power stair lifts, wheelchairs, hearing and respiratory aids as well as the heat, light, refrigeration and connectivity that we all depend on. If a pre-payment meter then runs out of credit and this equipment can’t be used, it turns energy debt into a death sentence for many.

Matt Richards, Campaign Manager at 38 Degrees, said:

The life-threatening risks of a home without power are made starkly clear by these horrifying figures. Yet by forcing people on to pre-payment, energy companies continue to put their customers at risk of being left in the cold and dark when the meter runs out. The Government and energy companies must act together to protect the most vulnerable, so this winter’s tragedies are not repeated next year.

Mike Childs, head of policy at Friends of the Earth, said:

Cold, damp and poorly insulated homes are known to have a terrible impact on health, leading in the worst cases to too many early and avoidable deaths here in the UK.

But they’re also an environmental disaster, because they require more energy to stay warm, which means more emissions unleashed into our atmosphere.

We’re already seeing the devastating consequences of burning fossil fuels – including gas for our heating – through extreme weather events all over the globe. And too often it’s the communities that have contributed least to climate change that are the worst impacted. By insulating homes and switching to greener heating, we can save not only lives here in the UK, but overseas too.

ENDS

Image: National Pensioners’ Convention

[1] For methodology, data and sources, please visit: https://www.endfuelpoverty.org.uk/about-fuel-poverty/excess-winter-deaths-and-fuel-poverty/

[2] Winter is defined as December, January and February. Based on table 3, column EB in latest ONS data https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/datasets/excesswintermortalityinenglandandwalesreferencetables and applying UCL / Institute of Health Equity 21.5% Excess Winter Deaths attributable to cold homes.

[3] See full details at: https://www.endfuelpoverty.org.uk/about-fuel-poverty/excess-winter-deaths-and-fuel-poverty/

Call for social tariff as a quarter of old people live in cold homes

New research by Age UK shows that a quarter (24 per cent) of over-60s are living in homes which are colder than they would like them to be, rising to 27 per cent for older people with a disability.

The polling comes as 100 charities and non-profit organisations across the UK have joined together to call for more targeted support in the form of a social tariff for the energy market to help older and disabled households heat their homes.

A social energy tariff is a discounted, targeted tariff aimed at those in greatest need to ensure they are able to live in their homes comfortably.

The plans have been set out in a letter to the Chancellor and would support low-income households who face a double burden from the rising cost of bills and paying more for their energy due to the poverty premium.

The letter calls for targeted support to be made available to those who need it most – including those on means-tested benefits, disability benefits and Carer’s Allowance as well as those missing out on welfare support but still struggling with their bills.

In addition, National Energy Action and Energy Action Scotland have today released their latest Fuel Poverty Monitor which provides an annual analysis of how the energy crisis has impacted fuel-poor households.

The Monitor confirms that households living on the lowest incomes, in the least efficient homes and on pre-payment meters, are being hardest hit by energy price increases.

It recommends the Government urgently consults on a mandatory social tariff to begin in April 2024, or sooner if practicable, to provide affordable energy for low-income and vulnerable households; and that the focus of this should be to ensure that the targeting of such a scheme goes beyond just those households that receive means-tested benefits.

From April 2023, the Government’s Energy Bills Support Scheme comes to an end and the support provided by the Energy Price Guarantee will be reduced.

Demand for the charities’ services are high and they are being inundated with calls from people in dire need, for example those relying on medical equipment like dialysis machines, who are facing a daily struggle to keep their equipment turned on and stay warm and well.

Caroline Abrahams, Charity Director at Age UK, said:

Imagine having to choose between staying warm, feeding your family, or powering essential medical equipment. This is the reality for increasing numbers of older and disabled households across the country.

Older people are struggling to get by now, and that’s before another energy price increase comes their way in a few months’ time. Many will simply not be able to cope with further price rises and we’re extremely concerned their health and wellbeing will pay the price.

There needs to be much more protection for those who have no other means of paying such extortionate energy costs. The Government must introduce a social tariff for the energy market whilst prices are so high, and ensure we never face a crisis like this again.

Fuel Poverty Monitor author Matt Copeland, head of policy and public affairs at National Energy Action, says:

We spoke to over a hundred organisations across the UK, directly with our clients and polled the general public. From this it’s clear that the energy crisis is having a profound impact on the poorest and most vulnerable households in society.

Whether households are heating just one room for just a few hours a week, or rationing the use of their medical equipment, the results are completely unacceptable in modern day society. So far, the UK Government has offered sticking plaster solutions to the crisis.

What is really needed is structural change to the energy market. We were told time and again that a social tariff is what is needed. Today we come together with hundreds of other organisations to say just that. The UK Government must urgently prioritise work to implement a social tariff as soon as possible.

James Taylor, Director of Strategy at disability equality charity Scope, said:

Astronomical energy bills are pushing disabled people to the brink.

Our helpline has been inundated with calls from disabled people whose bills have doubled or even quadrupled in a year.

Prices will rise again this April but disabled families have nothing left to cut back on. They can’t turn off vital, life-saving equipment and budgets can’t stretch any further.

Other plans for an “Energy For All” allowance for all households to have access to a free band of energy are also being developed by End Fuel Poverty Coalition members.

Protest calls for end to excess winter deaths caused by cold homes

Protestors are to stage a vigil in Westminster over the number of people dying from living in cold damp homes.

Members of the National Pensioners’ Convention, Fuel Poverty Action, Disabled People Against Cuts (DPAC) and others will hold a minute’s silence in memory of those who have died as Big Ben chimes 12pm on Thursday, 19th January 2023.

The protest is being staged on the day the latest ‘excess winter deaths’ figures for England and Wales are due to be announced by the Office of National Statistics (ONS). The figures will cover the period from December 2021 to February 2022, prior to the huge surges in costs of energy bills and number of homes in fuel poverty.

The demonstration follows on from a day of action on fuel poverty co-ordinated by the Warm This Winter campaign which saw events take place up and down the country in December 2022. Further “Warm Up” protests are being organised for Saturday 21st January by Fuel Poverty Action.

The event will start at 11.30am on the 19th January 2023 at the George V Statue, Westminster SW1P 3JY.  Speakers will address the demonstration, leading up to the one minute silence.

Pall bearers dressed in black will then slow march with a coffin bearing the latest excess deaths figure to Downing Street to hand in a letter to Prime Minister Rishi Sunak calling for immediate action to end this annual scandal.

NPC General Secretary Jan Shortt said:

It is shameful that anyone should die from cold related illness in this country. But we fear that the rocketing cost of living, rampant energy prices, and the disastrous crisis in the NHS and social care will see tens of thousands more die in this way.  It’s time the government took action to end this horrific annual cull of our oldest and most vulnerable.

Alex Considine who is planning on attending the protest said:

As a single mum with two grown up children, still living at home but with decent incomes, we are all still struggling to survive in this energy driven cost of living crisis.

Even after cutting back, cutting down and reducing our outgoings we are still sitting in the dark at times and not putting the heating on.

And we are the lucky ones.

My neighbours and friends  are in dire straits and constantly asking for my help and advice.  Our homes are cold and damp and our children are getting sicker and sicker with no end in sight. How do we go on?

The protest will also put further pressure on the Government to Ban Forced Pre-Payment Meters after more politicians spoke out about the scandal. Ruth London from Fuel Poverty Action added:

Forcing people onto pre-payment meters is turning energy debt into a death sentence for many.  Suppliers are doing this in defiance of their licence conditions, while Ofgem, the courts, and the government are colluding.

Many people rely on energy to power stair lifts, wheelchairs, hearing and respiratory aids as well as the heat, light, refrigeration and connectivity that we all depend on.

A spokesperson for the End Fuel Poverty Coalition commented:

The energy bills crisis has its roots in Westminster and the Government’s failure over decades to help us insulate our homes and secure a renewable-led energy grid.

The cost of this failure is now being felt by the elderly, disabled, those with health conditions and young families. Even in mild winters, we see huge levels of excess winter deaths caused by living in cold damp homes which put our country to shame.

We need urgent additional financial support for the most vulnerable this winter and next and a significant ramping up of insulation and energy efficiency schemes.

3.2m pre-payment meter customers left without heat

New research has found that one person every 10 seconds ran out of credit on their pre-payment meter last year because they couldn’t afford to top up.

The findings put more pressure on the Government to act on the pre-payment meters scandal as a total of 3.2 million people across Great Britain were left without heat or light according to Citizens Advice.

In debates in Parliament this week, the energy and justice ministers were put under pressure on the issue of forced transfer of homes onto pre-payment meters. Caroline Lucas MP and Rachael Maskell MP both raised the issue in debates, while a Bill to ban the practice has been put forward by Anne McLaughlin MP.

Previous research for the Warm This Winter campaign found that a third of pre-payment meter customers are now living in a cold damp home.

The energy regulator, Ofgem, has rules that means certain groups, such as disabled people and those with long-term health conditions, should not be forced onto a prepayment meter. In October, Ofgem warned suppliers that not enough was being done to identify customers in vulnerable circumstances before installing a prepayment meter.

But Citizens Advice data reveals that in the month following Ofgem’s intervention more than more than 470,000 struggling households including a disabled person, or someone with a long term health-condition, were cut off from their energy supply at least once.

Citizens Advice also found that more than one in five (19%) prepayment meter customers were cut off in the past year then spent at least 24 hours without gas or electricity, leaving them unable to turn the heating on or cook a hot meal.

The End Fuel Poverty Coalition has been calling for a ban on the forced transfer of homes on to pre-payment meters. A spokesperson for the Coalition commented:

The staggering extent of the prepayment meters scandal is now clear. Energy firms and the Government should hang their heads in shame.

Magistrates who approved court warrants in bulk for energy firms to install prepayment meters should also reflect on their role in this injustice.

A full ban on the forced transfer of customers to prepayment meters, including via smart meter mode switching, is now the only acceptable course of action.

Citizens Advice has now joined the calls for a total ban on forced prepayment meter installations until new protections are introduced, ensuring households can no longer be fully cut off from gas and electricity.

The charity reports it has seen a 229% increase in the past year in the number of people coming for help who can’t afford to top up their prepayment meter.

Pre-payment meters crisis hits ‘smart’ customers

The forced use of pre-payment meters (PPMs) is hitting smart meter customers, according to new data released under Freedom of Information rules. [1]

Almost two-thirds of smart meters switched to the more expensive “pre-payment” mode in the first half of 2022 were due to debt (48,062 households).

The figures, obtained by the Bureau of Investigative Journalism (TBIJ) and shared with the End Fuel Poverty Coalition, reveal that in 64.4% of cases, a smart meter was forced into a pre-payment mode as the customer was in debt to their energy firm.

Separate figures for the Warm This Winter campaign, reveal that 68% of smart pre-payment meter customers are vulnerable, with 58% having health conditions or disabilities. [2]

While the number of smart meter customers who have been “disconnected by the backdoor” is lower than for those on traditional PPMs, it is still estimated that 53% have drastically reduced their energy use in recent months and 35% now live in a cold damp home as a result. [3]

Overall, the data obtained by TBIJ also shows that 895,739 customers were in debt to their energy firm by the end of June 2022, before the winter price rises kicked in.

Pre-payment meters could cost customers in excess of £200 more for their energy this winter. Recent investigations by the media revealed that energy firms have secured almost 500,000 court warrants to install these traditional pre-payment meters in homes of customers in debt since the end of lockdown. Smart meters can be turned to pre-payment mode without a court warrant.

The End Fuel Poverty Coalition has called for a ban on the forced transfer of customers to all kinds of pre-payment meters. A spokesperson for the Coalition commented:

The new figures reveal the extent to which unscrupulous suppliers are forcing people onto more expensive tariffs by switching their smart meter remotely onto pre-payment mode.

Consumer groups and charities have long supported the roll out of smart meters as a way to help save energy and reduce bills, but these findings will undermine the programme going forward.

When customers in debt are on pre-payment tariffs they will repay their debts and also incur daily standing charges – on top of paying more for their energy at a higher unit cost. This can often lead to customers being “disconnected by the back door” as the cost of servicing debt and standing charges leaves them with no money for energy.

The End Fuel Poverty Coalition now advises any customers to check all messages from energy firms and if they are contacted about a pre-payment meter installation to contact the Good Law Project who are looking to challenge these transfers.

Jacky Peacock from Advice for Renters commented:

We are aware of some families who sign Agreements for the switch to PPMs without understanding what they are signing up for.

This affects people who are not fluent in English the worst, with many just thinking that this is a way to avoid big bills they cannot afford to pay.

Nobody from the energy industry explains that if they don’t constantly top up the meter to cover their debts and the ongoing standing charge as well as the energy they need, they could be left disconnected.

Ruth London from Fuel Poverty Action added:

MPs have recently told the Government that their constituents would die this winter – unable to access even light, a phone, hot water, or urgently needed medical equipment that depends on power.

They said they did not want to go home to a warm Christmas, leaving people who are ill or old to die in misery, or leaving children in the cold and dark.

They asked for at least a moratorium on this practice, which amounts to disconnection by the back door.

In response to the urgency of this crisis, the Minister promised to do absolutely nothing.

Graham Duxbury, Chief Executive of Groundwork UK:

Smart meters and pre-payment meters can be a great tool for people to take control of their energy use. In the current energy price crisis, however, forcibly switching people to pre-payment meters could have massively detrimental consequences, impacting on people’s physical and mental health.

Our Green Doctor energy advisers are seeing more and more households being switched to pre-payment meters because of relatively small debts.

The answer is not to drive people into greater hardship, but to provide more, and better coordinated, independent advice so that people can navigate a challenging winter without falling into crisis.

ENDS

[1] The Bureau of Investigative Journalism obtained the data through Freedom of Information requests to Ofgem. Data only available for Q1 and Q2 2022. Figures apply to England, Scotland and Wales only. The 46,082 households switched to smart meter PPM mode by suppliers in Q1 and Q2 2002 is more than the number switched to PPM mode in the whole of 2021 (43,072).

[2] 2,186 people interviewed between 20-21 December 2022. Results were weighted to be representative of the GB population. A vulnerable household is defined as having a child under 6, an adult over 65, a person who is disabled or with a long term health condition.

[3] Figures relate only to people on Smart PPMs, not legacy PPMs. 53% stat from previous research for Warm This Winter, which interviewed 2,198 people between 29-30 November 2022. Results were weighted to be representative of the GB population.

Government announce cut in financial support next winter

The Government has announced a cut in the support available to households in fuel poverty next winter.

While the Energy Price Guarantee will continue to cap the unit cost of energy, all energy bills will increase from 1 April 2023 – at the same time as the Energy Bills Support Scheme finishes.

The final increase will depend on energy prices, which have fallen in recent months, but currently predictions range from a 12% to 20% increase.

In 2022/23, the most vulnerable households were given support of up to £1,500. According to media reports, for 2023/24 the figure reduces to £1,350. A 10% cut in support.

These changes come on top of additional increases in energy costs which many Economy 7 customers saw on their bills from 1 January 2023. Support in 2023/24 for households not on means-tested benefits and those living in “off gas grid” properties have also yet to be confirmed by the Government.

A spokesperson for the End Fuel Poverty Coalition commented:

This winter we have seen over 9m adults living in Dickensian conditions in cold damp homes.

Yet despite energy bills increasing by 20% from April 2023, the support for the most vulnerable announced by the Government has not increased from last year.

In short, bills are going up, support is going down and households will be worse off than they were this winter.

While we support the principle of prioritising support for those who need it the most, the Government must go further to help the millions of homes in fuel poverty throughout 2023.

This does mean more financial support, but also non-financial measures such as banning the forced transfer of households onto more expensive pre-payment meters.

Based on media reports, the End Fuel Poverty Coalition estimate that the support on offer in 2023/24 will be as below:

Financial Year 2022/23 Financial Year 2023/24
£2,500 average household bill through Energy Price Guarantee* £3,000 average household bill through Energy Price Guarantee*
£400 Energy Bill Support Scheme to all households. No plans to extend scheme.
£650 cost-of-living payment for means-tested benefit claimants, split into two payments (in summer and autumn 2022). £900 payment to 8m households on means tested benefits (in four instalments through to Spring 2024)
£150 payments for people with disabilities. £150 payment for more than six million people with disabilities.
Up to £300 payment for pensioners. £300 for over eight million pensioners on top of their Winter Fuel Payments.
Source: https://www.gov.uk/guidance/cost-of-living-payment Source: Press Association as reported by ITV and others.
* Please note the Energy Price Guarantee caps the unit cost paid, not the total bill. This may change due to changing energy prices. Many more vulnerable households pay significantly more than the average stated. The average household bill in winter 2021/22 was £1,277, meaning the average household will be paying £1,523 to £1,723 more by winter 2023/24.