Hard winter reveals a two-tier UK when it comes to heating homes

You also have to manage the seasonal peaks in how much energy you’ll need. In this country, if you owe money to your energy company, then each time you top up, a proportion of that money is taken to repay your debt. You also pay a slightly higher price for your energy than people on direct debits, because the companies say the system costs more to run.

Energy companies are only supposed to move indebted customers to prepayment meters as a last resort and not if they’re vulnerable, but charities and Ofgem say they aren’t always doing the checks they should. The switch to prepayment doesn’t always involve someone at the door. If you have a smart meter, companies can switch you over to prepayment mode remotely. Ofgem recently chastised energy companies for switching people remotely “without full regard to the licence conditions, leading to serious detriment to these consumers”.

“We’re seeing people who have very traditional kinds of jobs – nurses, people who work in schools,” says Matthew Cole, who runs the foundation. Citizens Advice, meanwhile, has called for a ban on moving people to prepayment over the winter. An even better idea would be to get rid of the system for everyone except those who prefer it.

Source: Real Estate Daily Report (realestatedailyreport.net)

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