North Wales MS and Chair of the Senedd’s Cross Party Group on Fuel Poverty and Energy Efficiency, Mark Isherwood, has this afternoon backed a motion which supports calls for those forced on to a prepay meter to be properly compensated by energy suppliers and switched back free of charge.
Speaking in the Member’s Debate on ‘Prepayment Meters and Energy Advice Services’, Mr Isherwood stressed that proportionately more households in Wales use prepayment meters (PPMs) compared to England, that Wales has the highest proportion of gas PPMs compared to other Great Britain Nations, and that they are often used by some of the most vulnerable in society, on low incomes and/or already in debt to their supplier.
He referred to the fact the Anglesey has the highest level of prepayment meters in Wales, at almost 29 per cent, followed by Gwynedd at almost 22 per cent, and welcomed actions taken by the UK Government to stop forced installations.
He also emphasised the urgent need for the Welsh Government to accelerate the improvement of energy efficiency in fuel poor homes.
Speaking in the Chamber, he said:
“In January, before The Times investigation revealed British Gas was routinely sending debt collectors to break into customers' homes and force-fit prepayment meters, even when they're known to have extreme vulnerabilities, the then UK Business Secretary wrote to Energy Suppliers stating that they should stop forcing vulnerable customers on to prepayment meters and that they should make greater efforts to help those struggling to pay their bills.
“He called for the ‘urgent publication’ of the energy suppliers' recent investigation into vulnerable customers, and the release of data on applications suppliers had made to forcibly install meters.
“In February, Ofgem asked Energy companies to suspend the forced installation of prepayment meters, and Lord Justice Edis ordered Magistrates' Courts in England and Wales to stop authorising warrants for Energy Firms to forcibly install prepayment meters with immediate effect.
“On the same day, the then UK Energy Minister met the boss of Ofgem and told him that the UK Government expected ‘strong and immediate action where suppliers fall short of their obligations’.
“During last week’s UK Government Budget the Chancellor announced that from the 1st July prepayment energy charges will be brought in line with customers who pay by direct debit “on a permanent basis”.
“Climate Cymru has expressed concern that this does not affect the Standing Charges, which is where the majority of the PPM uplift happens.
“In this context, the UK Government has asked Ofgem to report back on options for ending the higher standing charges paid for by prepayment meter users.”
He added:
“A constituent emailed me stating ‘Prepayment meters were intended to prevent people from getting into arrears.The problem here is that the utility companies charge a higher rate to those people using prepayment metres and that needs to change’.
“Punishing someone for paying in advance and punishing someone for being on a low income cannot be justified. We will be pleased to support this motion accordingly.”
Mr Isherwood also stated that National Energy Action, NEA believes the delivery of energy efficiency measures should be promoted and delivered alongside independent direct advice and assistance to vulnerable households in, or at risk of, fuel poverty on improving home energy efficiency, maximising incomes, managing/reducing energy costs, and accessing the broader support available in the energy market.
He said: “It has been a year since the Welsh Government consulted on the next iteration of its Warm Homes Programme and we urgently need to accelerate the improvement of energy efficiency in fuel poor homes.”