An example of social policy action – pre-payment (token) electricity meters

 A bureau client called Alfred is retired, 70 and a widower. He has a pre payment meter for electricity so that he doesn’t go in to debt. Electricity prices went up several times in recent months but Alfred’s supplier didn’t come round to change (recalibrate) the meter, so he went on paying at the old cheaper rate. Eventually they did recalibrate the meter and backdated the price increase – putting him £104 in debt.

 The bureau wrote to the supplier and asked them to write off the debt built up through no fault of his own. The bureau also submitted the story to Citizens Advice as social policy evidence.

 Citizens Advice had similar stories from a few bureaux and teamed up with energy watch (no consumer focus). A campaign was launched calling on fuel companies to stop the practice of “back charging” for price increases which had not been made to meters. Pressure mounted on OFGEM (the fuel regulator) to make new rules, and on all fuel suppliers to improve their management of pre-payment meters.

 Eventually the provider changed its policy and now only applies the increase from when the customer’s meter is re-calibrated. Other companies have agreed to be more proactive in contacting customers to recalibrate meters and to consider writing off debts for those in difficult financial circumstances.

 OFGEM issues new guidelines to the energy industry stating that suppliers should reset electricity prepayment meters within one month of price changes. This means that 600,000 prepayment meter customers will get some protection from harsh back-charging policies.