An industry source has warned that the ban could lead to companies seizing cars and TVs from struggling customers instead of forcibly installing prepayment meters 🔴Exclusive from SteveRobson04
, including where people are aged over 85 or rely on medical equipment such as a dialysis machine.
“This is the thing that people are being awfully quiet about,” the source said. “This is not a well thought out policy. It is a hidden tax. People who pay their bills will be covering the cost of people who don’t. It adds that while it is considering adjusting the price cap – which will mean higher bills for all customers – it also told energy firms that they are expected to use “other mitigations” to pursue debt “for customers who would otherwise have a PPM installed, rather than there being a presumption that all debt would automatically become unrecoverable.”
Energy UK, the body that represents the majority of energy suppliers, said it welcomes the new code of practice but warned that debt in the industry is a growing problem. “While it’s very welcome that those on prepayment meters will now pay the same rates as others, this issue also underlines how important it is to make bills affordable for all customers in future.
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