A charity has called on Ofgem to issue a “binding moratorium” on installing prepayment meters (PPMs) in disabled customers’ households, which it warned is an “unsafe” practice.
Scope, an organisation which campaigns for disability equality, issued the recommendation in its latest report on how the cost of living crisis is impacting those with a disability in terms of the service they receive from utility providers.
The charity conducted a number of surveys in which it polled thousands of disabled adults across the UK, as well as billpayers who live with a disabled person in their home.
Scope said that callers to its Disability Energy Support service “regularly tell us about poor supplier practice”, often in relation to the forced installations of PPMs.
Ofgem rules stipulate that PPMs should only be installed where appropriate, namely where a disabled customer would not be at immediate risk if they went off supply, is able to easily top up and can afford to do so.
Yet the survey found almost three quarters of those on a PPM (72%) had experienced problems in the last 12 months.
This included being forced to ration their energy usage in order to remain on supply (50%) and going off supply either to save money (26%) or because they were not physically able to top-up due to their impairment (14%).
Of those who had self-rationed or been cut-off, nearly half (47%) said they have had to cut down on essentials such as using their fridge, cooker or phone, and a quarter (25%) said their or someone else in their household’s health had been put at risk.
Worryingly, the charity added, more than a quarter (28%) of those who had experienced an issue with their PPM said their supplier did not offer them any support.
The report said: “It is hard to argue that forcefully installing PPMs in households where there is a disabled person or child is appropriate – yet this is exactly what is happening. Sadly, Scope’s helpline has seen far too many examples of this.
“One caller needed to keep medication in the fridge and going off supply would render that medication unfit for use. Yet their supplier still tried to forcefully install a PPM to recover debt.
“The risk is that customers self-disconnect if they cannot pay for top ups, with serious consequences to their health and wellbeing.”
While bills remain high, the charity is calling for Ofgem to issue a binding moratorium on any new installations of PPMs in disabled households.
Scope said while it understands some disabled households prefer to budget using a PPM, they are often installed by energy suppliers under warrant to recover a debt.
“With the risk of self-disconnection for many disabled households being so dangerous, we argue that PPM installation is currently unsafe,” it added.
It further argued that all suppliers must be mandated to contact all disabled PPM customers and offer them a choice of moving to a credit meter.
Additionally, Scope highlighted how PPM customers are charged more for their energy due to their higher costs to serve. As such Ofgem should, “as a matter of urgency”, look to spread those costs amongst all customers through the licence conditions.
Meanwhile, the government should “urgently review” whether standing charges can be funded through taxation and in the short term Ofgem could mandate that these are paused for disabled households this winter.
Responding to the report’s findings, an Ofgem spokesperson said: “Protecting consumers is our top priority and installing a prepayment meter should only be as a last resort for suppliers.
“We are clear that they must step in early to help customers manage debt through repayment plans. As part of our role, we have taken steps to ban installations entirely, for the most vulnerable customers.
“This includes, for example, prohibiting charges for people in severe financial difficulty, and banning installations entirely for people for whom the experience would be severely traumatic, such as those with severe mental health issues.”
Meanwhile, an Energy UK spokesperson said: “We are aware of the concerns around the movement of customers on to prepayment meters and we’re working with our members and Ofgem to ensure that processes in place to prevent any self-disconnections of vulnerable customers are enforced.”
Social tariff
Elsewhere, Scope strongly advocated the introduction of a social energy tariff as a way of targeting support at the most vulnerable consumers.
As well as energy usage, such a tariff should take into account disabled people’s income. It should apply to people receiving means-tested benefits, Disability Living Allowance, Personal Independence Payments or Attendance Allowance; all households below two thirds of the median household income; and carers allowance recipients.
Eligible households, it added, could be identified through DWP benefit and claimant data.
WHD
Meanwhile, the government must reverse the recent eligibility changes to the Warm Home Discount and Energy Company Obligation (ECO) schemes which mean almost 300,000 disabled consumers who are in receipt of Disability Living Allowance, Personal Independence Payments or Attendance Allowance are no longer eligible for the schemes.
“The government has made clear that it thinks the majority of DLA and PIP households who are not in receipt of means-tested benefits have higher incomes and are therefore theoretically less at risk of fuel poverty,” the report stated.
“We believe this new approach fails to take into the account the higher energy costs and usage that we know many disabled people have. DLA and PIP are benefits designed to help with the extra living costs that can come with being disabled.
“Receiving these benefits demonstrates that you have extra costs. The removal of the WHD for many will make the current situation even worse.”
Regulation
The report called on both Ofgem and water regulator Ofwat to take a “zero-tolerance approach” to poor supplier practices and behaviour. To that end, “robust fines” must be issued where appropriate. Removing licenses for repeat or serious poor performance and breaking of licence conditions should not be off the table.
Data sharing is another area in which Scope believes the regulators could improve services for disabled customers.
It highlighted how the Priority Services Register (PSR), the main mechanism through which energy and water suppliers gather information about a disabled customer or household, does not capture their financial situation. As such it does not establish if they are struggling to pay.
This issue could be alleviated by the regulators mandating companies collect this data from disabled households.
In response to the report, Energy UK said suppliers are working to increase the uptake of customers on the PSR and that retailers are continuing to increase the support available.
A spokesperson added: “Scope is reporting increased levels of contact from customers requiring extra support which tallies with what energy suppliers are also experiencing.
“Energy UK’s Vulnerability Commitment signatories have partnerships in place with third-party organisations, including Scope, as well as providing additional training to support staff on how best to identify vulnerable customers.
“Signatories have developed specialised teams to signpost vulnerable customers and offered them the suitable support available, having received additional training.”
Meanwhile, an Ofwat spokesperson said: “Water and wastewater companies need to ensure that no customers are put at a disadvantage because of their age, disability or illness.
“We expect all companies to maintain their Priority Services Registers, and provide the necessary support to customers on those registers when it is needed.”
A spokesperson from Water UK said: “Water companies are working hard to ensure all their vulnerable customers, including those with disabilities, get the help they need during the cost of living crisis.
“A wide range of help is available, including payment breaks and priority services, and we would encourage anyone in need of support to get in touch with their local water company.”