British Gas makes the right move for poor customers

energywatch and Citizens Advice warmly welcomed the decision by British Gas to stop backdating price rises for token prepayment meter users - a practice that has left customers with huge bills they weren’t expecting through no fault of their own.

Around a million electricity consumers use token electricity meters which need to be individually reset every time the price goes up. Households on low incomes often use prepayment meters to budget.

But energy companies are known to be slow to reset (recalibrate) these meters. Some companies then try to recover the debt that has grown in the meantime - a situation made worse by the deluge of price rises since 2003. So consumers who have budgeted carefully using prepayment meters, not only have to deal with a huge increase in the amount they pay but also with debts of hundreds of pounds that they were not expecting.

British Gas has now joined EDF Energy and Scottish and Southern Energy in saying it will not apply a debt when it recalibrates a meter. British Gas is also replacing token meters with new electronic pre-payment meters.

Citizens Advice Director of Policy, Teresa Perchard, said: "I am delighted that British Gas has recognised that backdating price rises has a devastating effect on poor households and this is very welcome news for people in the run-up to Christmas. Prepayment meter customers already get a raw deal, and our evidence shows that some of the most vulnerable customers are ending up owing hundreds of pounds, exacerbating the hardship they face.

"This move will benefit customers in the future, but we are appealing to British Gas to treat those who already have large bills because of this sympathetically, and allow them to pay the amount at a rate they can afford. A helpline for these customers would be very helpful.

"It’s time that Powergen, Npower and Scottish Power stopped being scrooges and followed suit."

energywatch Director of Campaigns, Adam Scorer, said: "This is good news. About 150,000 British Gas prepayment consumers will no longer get the shock of an unexpected, undeserved debt. energywatch and Citizens Advice have been calling for all companies to take this step and we are delighted that British Gas has listened to us. 79 MPs also signed a parliamentary motion tabled by Brian Donohoe MP, which called on suppliers to end the iniquitous practice.

"However, three of the big six suppliers - Scottish Power, Powergen and Npower - must now get into line; they are effectively punishing some of their most vulnerable consumers because those consumers are, through no fault of their own, dependent on archaic technology and poor service."