Cut the debt, not the power: MSP’s call to energy suppliers
The MSP for Motherwell and Wishaw has been helping constituents on prepayment meters who are facing historical energy debt; a practice which Ms Adamson describes as wholly unjust.
When a tenant vacates a property, some companies have no process in place to wipe the meter and freeze the standing charges until a new tenant moves in. This has resulted in tenants moving into a property and facing debt that is attached to that meter, unrelated to the new tenant’s energy use.
Ms Adamson is also calling for wider reform to the standing charge - the fixed daily amount charged regardless of energy use. The MSP questioned energy providers over their procedures to enable individuals to freeze standing charges when they are not in the property because of exceptional circumstances such as a long hospital stay; medically approved care or caring responsibilities; or checking into rehabilitation facilities.
Ms Adamson said: “The concept of historical energy debt flies in the face of basic fairness. This wholly unjust practice means people being saddled with another person’s debt – unrelated to their own energy use. I have urged energy companies to review their procedures, end this practice, and to work with local authorities to identify people with complex needs who may require additional support.
“New tenants should be shielded from historical debt and only pay for services that they actually use; I am alarmed that a company would adopt any other practice.
“Ofgem requires suppliers to support customers, who are struggling to pay their bills, to limit the debt build-up. All British domestic energy suppliers have signed up to an updated Code of Practice and more stringent Ofgem oversight of prepayment meters that are enforced under warrant installations or remotely switched without consent.
“Despite the new code of practice, my constituents have reported pressurising or coercive practices from some energy suppliers. Forced installations are to be sought only as a last resort. But I have constituents who were pressured into installing a prepayment meter with the promise that it would help them out of debt.
“There are many individuals who do not have a mobile phone, internet access, or, indeed, capacity to deal with a litany of administration in times of great financial or emotional distress. Not enough consideration is given to such circumstances.
“This Christmas period is going to be hard for many people. Amidst a cost-of-living crisis, and rising bills, I am urging energy suppliers to do more to help my constituents and people across the country.
“There practices are driving inequity. People should not be left without power as a matter of basic rights. People should not be in debt because of someone else’s energy use. That is why I am calling on suppliers to cut the debt, not the power.”