EDF Energy slammed for offering customers £100 to switch to pre-payment meters
THOUSANDS of EDF Energy customers are being offered cash to switch to a more expensive energy tariff.
The energy supplier is offering select customers £100 in credit to switch to a smart prepayment meter.
EDF Energy sent customers an email last week which announced further support for those struggling to pay their energy bills.
However, one of the policies could dupe customers who pay by direct debit to move onto a costlier prepayment meter.
Sara Williams, founder of Debt Camel said: “£100 sounds tempting – but there are two reasons why switching to a prepayment meter is a dangerous move for many people.
“First energy prices are higher for prepayment meters. If EDF wants to encourage people to use prepayment meters.
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“Second, having a prepayment meter may result in you “self disconnecting” in winter when you can’t afford to put any more money on the meter.”
At the current price cap, average households those who pay their energy bills by direct debit will pay £1,971 over a 12 month period.
But those on prepayment meters come under the remit of a higher energy price cap.
The price cap for those on prepayment meters current sits at £2,017 a year – meaning the average prepayment meter customers pays £46 more on their energy every.
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However, if the government fails to step in before October 1, bills for direct debit payers will hit £3,549 and £3,608 for those on prepayment meters.
This means the average prepayment customer could end up paying £59 more across the year.
An EDF Energy spokesperson said: “The purpose of our campaign to proactively contact our 100,000 most vulnerable customers is to provide them with tailored help to reduce their bills this winter, this is not limited to providing £100 credit for switching to smart prepayment meters.
“Since we are contacting our most vulnerable customers, payment method is not a stipulation for us providing assistance and each case will be dealt with on its own merits.”
A £100 bill credit looks attractive but switching to a prepayment meter will mean you’ll pay more to use less energy – not to mention warnings from industry experts that customers will have to top up £15 every two days this winter.
The Sun has already called for a temporary ban on moving customers onto pre-payment meters this winter.
What makes up EDF Energy’s support package?
The energy supplier set out four objectives to help its customers with the cost of living crisis on August 23:
- Up to £100 of savings made available to smart meter customers via the firm’s free Energy Hub platform.
- Fresh Start Campaign launched to help tackle existing debt.
- EDF will contact over 100,000 customers to outline help available and offer a £100 bill credit to those who move onto a smart prepayment meter.
- Call on the government for further support and solutions for the most vulnerable.
The campaign comes only months after EDF boosted the amount of cash available to help desperate families struggling to pay their bills from £5 million to £10 million back in April.
How can I get help from my energy supplier?
Those on Universal Credit and older legacy benefits could get over £3,000 in energy bill support.
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
Ask your supplier what’s on offer and how to apply, or check here:
- British Gas Energy Trust
- Bulb energy fund
- EDF’s energy customer support fund
- E.on’s energy fund
- Npower’s energy fund
- Octopus Energy Octo Assist fund
- Ovo’s debt and energy assistance
- Scottish Power’s hardship fund
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
If you’re in debt there are plenty of services you can take advantage of and they offer free and friendly advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
- Money Advice Service – 0800 138 7777
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA). These are agreements for managing multiple debts.
What help is already available?
And from September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.
From October the first, all UK households are set to receive the £400 energy bills rebate.
EDF Energy customers who pay their bills by direct debit will get the cash refunded directly into their bank account.
The payment will be made up of six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.
The way you’ll be paid will depend on how you pay for your energy.
If you’re on a credit meter the discount will come off your bills, but if you’re on a prepayment meter you’ll get a voucher.
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Check with your supplier to confirm how you’ll receive the cash.
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.