HOUSEHOLDS with smart meters are being warned they could be moved on to prepayment plans if they stop paying their direct debits.
Suppliers can switch them remotely to a mode where they pay upfront for energy costs rather then being billed regularly.
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It comes as the “Don’t Pay” campaign has called on Brits to stop paying bills following record profits amid the cost of living crisis.
But there are serious consequences for not paying bills and charities and experts have slammed the campaign as “dangerous.”
Energy customers could face debt collectors and suppliers can install a prepayment meter.
Traditionally this is done via a court warrant so they can enter the property to install the device.
Many with smart meters may not know that this can be done without needing to enter the home, and that prepayment meters are more expensive.
National Energy Action director of policy, Peter Smith, is now warning energy customers that they face being put on smart prepayment meters if they don’t pay their bills and is urging households to contact their supplier if they’re struggling.
He said: “If people don’t pay their bills in October, they could be put on prepayment meters remotely – without warrant.
“This means customers will end up paying more for a supply that could regularly go off if they can’t keep up with the payments.
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“It’s so important that if you are struggling with your energy bills to get in touch with your supplier as soon as possible so that they can work out a suitable plan with you.”
The energy regulator, Ofgem, says if consumers do not engage with their supplier to agree how to resolve their debt, suppliers can install a prepayment meter under a warrant to recover the money they owe.
However the requirement for a warrant does not apply when suppliers are switching smart meters to prepayment mode remotely.
Smart meters can be switched between prepayment and credit mode remotely by suppliers.
But Ofgem does warn suppliers to use the “remote switching facility fairly and appropriately.”
A spokesperson for the energy regulator, Ofgem, said: “We do not think it’s in consumers’ best interest to not pay their bills, and most leading charities and consumer groups agree.
“The knock-on effects of not paying bills can be huge for people. They could lose their direct debit discounts or be forced to move to a pre-payment meter. It could also damage their credit rating.
“Anyone struggling to pay their bills should speak to their supplier who is obliged to offer payment plans and direct customers to available support.”
Smart prepayment meters are more costly than standard energy energy meters.
The current price cap for those on a prepayment meter is £2,017 – £46 more expensive than those on the standard variable rate.
The latest warning comes as energy bills are predicted to hit as high as £5,300 this winter.
When can I be moved to a prepayment meter?
Suppliers must give consumers an active choice before remotely switching a smart meter to prepayment mode to collect debt and check that it is appropriate for consumers to pay by this method, including for vulnerability.
And in most cases, energy firms are required to check if it is safe and reasonably practicable to offer a prepayment tariff, potentially through a site visit, and must notify consumers of any change in payment mode and how to top up.
It’s important to know that your supplier can’t make you move to prepayment if you are disabled in a way that makes it hard to get to, read or use the meter or have a mental health condition that makes it hard to get to, read or use the meter.
Customers with an illness that affects their breathing, such as asthma or an illness that’s made worse by the cold, such as arthritis can decline a prepayment meter.
The same goes for those that use medical equipment that needs electricity – for example a stairlift or dialysis machine.
Moving customers to a prepayment meter is generally a last resort.
If you’re struggling to pay your bills, it’s vital your speak to your energy firm straight away as there is help they can offer.
Usually if you haven’t contacted your supplier over a debt after 28 days, it can install a prepayment meter
What help is available?
The exact help your supplier can offer will depend on your circumstances, and can range from grants and vouchers to repayment plans.
If you fall behind on your bill, one way an energy supplier can help is by arranging a repayment plan.
It means you agree a certain amount of the debt you pay back each month on top of your normal bill.
But this will have to be affordable for you.
If you’re asked to repay an amount you think is unaffordable you can tell them this and they should take this into consideration.
Energy suppliers are also offering cash grants to those hardest hit by bill rises.
For instance British Gas is giving out up to £1,500 through its hardship fund.
But the amount can vary according to your supplier and your circumstances.
Ask your supplier what’s on offer and how to apply, or check here:
Cold weather payments up £25 a day are also on offer when temperatures plummet below zero for households on low incomes.
The payment is made automatically, including to those on Universal Credit, for each seven day period of low temperatures between November 1 and March 31.
Anyone getting the state pension should also get winter fuel payments worth £100s. Winter fuel payments are a tax-free payment that comes from the government each year and is worth between £100 and £300.
In terms of council funds, the Household Support Fund helps families with the rising cost of living, has been extended.
To find out what support is available in your area, contact your local council.
