Pre-payment
This information will may help if you use a token meter which requires paper tokens or cards to pay for electricity. It also explains how to check you are paying the correct price for electricity and what to do if you are not.
If you use a prepayment meter that is updated with a key or smart/credit card style system, this doesn't apply to you. Neither does it apply to gas meters.
About token meters
Token meters are old technology and the price they charge you can easily become outdated. If your electricity provider changes its prices an engineer must visit your home to manually change the settings on your meter so that it collects payments at the new rate. Any delay between the price change being announced and the electricity provider adjusting your token meter can cause problems.
Firstly, if you use a token meter you can build up an unexpected debt simply because your meter continues to collect at the old, lower, rate right up until when your meter is adjusted. Some electricity companies expect you to pay the new price from the day they announce it, not the day they visit your house to adjust your meter. If your electricity supplier decides to collect this debt through your meter, this will mean that a portion of what you pay for electricity will actually go towards the debt.
Secondly, if your token meter has not been adjusted for a long period of time you are likely to see a big jump in the price you pay for electricity.
This seems unfair - what protection do I have?
Your electricity provider should arrange for an engineer to visit your home and adjust your meter within a reasonable period of time following a price change. If there has been a delay in adjusting the prices on your meter, your electricity provider may tell you that you have built up a debt that must be repaid. In order for them to be able to collect this type of debt, they must be able to prove that they made reasonable attempts to update your token meter after every price rise.
Your electricity provider must also provide you with a written justification for how they have calculated your debt. If you think this account statement is incorrect or if it shows your meter has not been adjusted for a significant period of time you should contact Consumer Direct for advice.
Am I paying the correct price?
This depends upon when your token meter was last adjusted by an engineer. If your meter hasn’t been updated recently it is possible that you are paying the wrong price for your electricity.
The easiest way to find out whether you are paying the correct price is to check your most recent electricity statement or bill. Use this to find out the unit price for electricity that you should be paying and compare it to the price set on your token meter. This will be displayed next to how much credit you have.
If you have any problems figuring out whether your meter is set to the correct price, telephone your electricity provider.
What do I do if my meter is set with the wrong price?
If the price on your meter is incorrect it is important to insist that your electricity provider arranges a convenient appointment for a meter engineer to visit and adjust your meter. Contact your electricity provider to book your appointment. If you telephone, make sure you write down and keep the details of the time, date and name of the person you speak to.
My electricity provider was supposed to adjust my meter, but no one has been – what can I do?
If your electricity provider wrote to you to make an appointment to adjust your meter, keep a copy of the original appointment letter and contact your electricity provider to ask for a new appointment. If your energy supplier fails to keep an appointment you could be eligible for compensation.
If it takes more than another month for your electricity provider to adjust your meter, write or telephone them with details of the dates you asked for an appointment. Insist that they offer you a convenient new appointment and that they write off any debt which may have built up (or credit you with any money you may have overpaid) because of their failure to adjust your meter within a month of you requesting an appointment.
Can I avoid paying for my electricity if I stop or delay my electricity provider from adjusting my meter?
No. If your electricity provider thinks you have tried to prevent them updating the price on your meter they may charge you at the rate of any price change from the date it came into force. Obstructing your supplier could leave you with a large debt.
Your electricity provider can also apply to a court for a warrant to enter your house and disconnect you if you refuse to pay for the electricity you have used.
What if I am already paying back other debts to my electricity provider?
You still have to pay back all other debts. This change only applies to debts built up because your electricity provider didn’t adjust your token meter quickly enough after price rises.
I have a debt because my token meter wasn’t adjusted quickly enough, is there a limit to how much money my energy company can charge me?
Yes, but the amount will depend on a variety of circumstances. For price changes before August 2007 most electricity companies will only try to claim back money for the past 12 months if the delay was their fault, but it depends upon the company.
In every instance your supplier should not attempt to backcharge for token meter debt older than 12 months.
Your electricity provider must provide a written justification of how they have calculated the amount you owe. If this does not provide a suitable explanation of how they calculated your token meter debt, contact Consumer Direct for further advice.
Can I have my token meter changed?
Yes. Electricity providers are in the process of replacing all token meters in Great Britain with modern prepayment meters that are easier to use and that apply new prices straight away. Your meter should be replaced free of charge by your electricity provider by 2009 at the latest.
Can I change to a credit meter?
Your energy provider will tell you if you can change your prepayment meter for a credit meter. Most companies do not charge for changing to a credit meter, although you might have to pay a security deposit if you have had trouble paying for your energy in the past. You can save money by changing to a credit meter and paying by direct debit (where money is taken from your bank account every month) but you must be sure that this payment method is right for you.
Switch to Save Money
If you have a prepayment meter of any type you are likely to be paying for your energy through the most expensive method. Some suppliers charge far more than others, depending on who supplies your electricity and gas you might be able to save over £100 a year by switching to a different gas and electricity company. Prepayment customers can still switch provided they owe less than £100.
