, Acting Leader of the Liberal
Democrats, has today written to the government and the CEO of
OFGEM, the energy regulator, to raise concerns about customers
relying on prepaid electricity and gas meters.
The former Secretary of State for Energy and Climate Change
outlined in his letter the risk that individuals living
alone who rely on prepaid meters, will be left “unable to
heat their homes, or forced to go out whilst unwell, jeopardising
the health of others”.
Speaking on this issue said:
“Over 4 million UK households rely on prepaid electricity and gas
meters. Of those, an untold number have no option to top up
online. Instead they have to go in-store to buy additional credit
to light and heat their home.
“Given the severity of the crisis we are now facing, and the
vital need for people to take social distancing seriously, there
is an imperative on government and on energy companies to ensure
that customers are not held to ransom for bills they cannot
realistically pay. No customer should face being cut off as a
result of a situation that is way beyond their control.
“I am calling on Ministers and leaders in the sector to introduce
whatever flexibility is needed to prevent any customers being cut
off, and to ensure no one is left without heat or light in the
face of this unprecedented pandemic. Government must step in to
protect those who are vulnerable. It must take decisive action
now.”
ENDS.
Notes to Editors
See below for the full text of Ed Davey's letter to , Secretary of State for
Business, Energy and Industrial Strategy, also sent to the CEO of
OFGEM.
Dear Alok,
As the impact of the coronavirus becomes increasingly widespread,
I am deeply concerned about the welfare of some of electricity
and gas customers, namely those who rely on prepaid electricity
and gas.
In the UK today, OFGEM figures show over 4 million households
rely on prepaid electricity (USWITCH).
As you’ll be aware, not all prepayment systems allow customers to
top up online or via an app on their phones. In fact, a large
number do not have that option. Instead customers with prepaid
meters face having to go to in-store PayPoints to top up their
prepayment card or key.
At a time when thousands of families face the very real prospect
of self-isolation - not least individuals who live alone
and may not have reliable family or friendship networks - we risk
a situation where people who run out of credit are unable to heat
their homes, or are forced to go out whilst unwell, jeopardising
the health of others.
I am sure that you will agree that such a situation is
unacceptable as it puts vulnerable people at risk.
As Secretary of State for Business, Energy and Industrial
Strategy, working with energy firms across the UK, are you able
to confirm what action your department is asking utilities firms
to take:
-
To support those who are at risk of being cut off due to lack
of credit?
-
To ensure that gas and electricity supplies are not
automatically switched off for those customers who are unable
to go in-store to top up?
-
To provide alternative measures to enable people to pay for
gas and electricity online, or to suspend payments
altogether?
In addition, I am concerned that a large number of people will
face real financial hardship, missing work or losing clients as a
result of the coronavirus pandemic.
Can I confirm what steps the government is taking to ensure
energy providers communicate with customers who may be unable to
pay their utility bills in the usual way as a direct result of
the coronavirus, and what added flexibility they will be asked to
introduce to support affected customers?
These are difficult times and we must come together to support
those in greatest need.
Many thanks in advance for your swift response.
Yours sincerely,
MP
Acting Leader of the Liberal Democrats
