Energy firms obtained almost 500,000 court warrants to install prepayment meters (PPMs) in the homes of customers in debt after the end of lockdown, according to an investigation for the i paper reported on 4 December 20221. The finding was published alongside research for the Warm This Winter campaign, based on 2,198 interviews carried out on 29 and 30 November 2022, which examined the circumstances of households on prepayment tariffs1.
The research found that 64% of prepayment meter customers are vulnerable, with 51% having health conditions or disabilities. 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 condition1. Almost a third (31%) of PPM customers now live in cold damp homes, against a national average of 19%. Among PPM customers who are also classified as vulnerable, 14% have disconnected and 36% now live in a cold damp home1.
Over one in ten (13%) of PPM customers have already self-disconnected by massively reducing their energy supply. The position differs by meter type: 18% of those on old fashioned PPMs and 7% of smart meter PPM customers have massively reduced their energy use, with a further 33% of old PPM and 53% of smart PPM households somewhat reducing consumption1. Prepayment meters could cost customers in excess of £200 more for their energy this winter1.
On consent, research for one energy firm indicated that while 86% of customers did choose to be on a PPM, this would imply that as many as 14% of the 4.5 million PPM households, around 630,000 households, did not actively choose to be on the tariffs1. The i investigation also reported that courts are in some cases "batch approving" warrant applications; in one series of cases seen by the journalist, almost 500 applications for prepayment meter warrants were issued in just under four minutes1.
The End Fuel Poverty Coalition, which published the research, has called for a ban on the forced transfer of customers to prepayment meters. A spokesperson said:
"The research shows the scandal of people condemned to a winter of misery, forced on them by energy firms."
Caroline Abrahams, Charity Director at Age UK, said PPM charges are generally higher than charges for those paying by direct debit, leading to higher rates of fuel poverty among this group. She said that although PPMs are included in the Government's £400 energy bill discount scheme, many are missing out because of problems with vouchers issued for those on older meters, estimating that at least 150,000 older households relying on an old PPM will miss out on the £400, and that recent Government figures suggest over 40% of vouchers sent to PPM households are yet to be redeemed1.
Why it matters for households
A warrant removes the household's choice about how it pays for energy. Once on a prepayment meter, supply stops when credit runs out, which is the mechanism behind self-disconnection2. Standing charges and debt repayment are collected through the meter on top of a higher unit cost, which the research links to customers reducing use or disconnecting1. For a home's energy independence, the practical effect is that control over when and how much energy is bought shifts to the supplier and the meter, and the household's ability to ride out a cold period or an unexpected bill falls. The research indicates that vulnerability and cold damp homes are concentrated among PPM customers, and that a share of households did not actively choose the tariff1.
What happens next
The National Pensioners Convention has called a protest against excess winter mortality rates on Thursday 8 December 2022 at 12 noon, meeting at the George V Statue, Old Palace Yard1. The End Fuel Poverty Coalition advises customers to check all messages from energy firms and, if contacted about a prepayment meter installation, to contact the Good Law Project, which is looking to challenge these transfers1. The investigation followed a weekend of Warm This Winter protests in more than 40 locations across the UK1.
Sources2 cited
- Number of pre-payment meter customers living in cold damp homes revealed - End Fuel Poverty Coalition, endfuelpoverty.org.uk
- Three years on - the forced prepayment meters scandal remains unresolved, endfuelpoverty.org.uk