I’d like to draw a positive parallel between pre-payment meters and smart meters.
That sounds facetious and in some ways it is. Rightly or wrongly, it seems pre-payment meters have become symbolic in the UK of poor families and intransigent tenants on Benefits Street.
Pre-paid meters can be forced by court order on customers who are in debt – last year UK utilities obtained 97,000 orders to deal with non-payment of debt, up from 63,000 in 2009.
Some 111,000 were installed in 2013. They limit tariff choice and cost the user more than direct debit options available to more solvent consumers.
Regulator Ofgem says instalment is a last resort and is looking into the increase.
It is particularly concerned that poor families are ‘self-disconnecting’ in order to save money.
Smart meters meanwhile are for the modern enlightened household, often with a solar panel on the roof and kids at university.
Centrica is making a big deal about leading the customer service revolution, installing these meters with their in-house info and apps so people can save energy and the world – “crikey, look at how much the kettle uses, did you measure for two cups or three?” etc….
One can argue, then, that the meters deliver similar outcomes.
The prepayment meter is a constant reminder of consumption – you really need to know much a day or a week costs, or the lights go out.
The smart meter is also a constant reminder of consumption, in real-time on your home display.
Only the smart meter users, however, can afford to ignore the message. Prepayment is a stick to smart meter’s carrot.
If utilities erased that £80/yr higher cost of prepayment vs direct debit, that would go some way to removing the stigma of these old-school devices.
Then prepayment’s image might change.
There are thrifty customers, even indebted customers, who value them.
Until then the headlines will always be along the lines of that in the Times on May 27th: ‘Prepay meters forced on thousands of poor families’.
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