Key Facts
•
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ERA set up a
Safety
Net procedure in 2004
which ensures that no vulnerable customer
in Great Britain is knowingly disconnected from
their electricity or gas supply –
at any time of the year
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ERA Position
The ERA set up a Safety Net procedure in
2004 to make sure that no vulnerable customer
in Britain is knowingly disconnected from their electricity
or gas supply. We have kept to our word
and we aim to maintain this level of rigorous
procedure.
Disconnection is a measure that is used
as a last resort, most often when a customer
has refused to accept a payment plan or a prepayment meter.
All energy suppliers go to great lengths
to avoid disconnections. Whilst a sensitive
issue, it is imperative that emotion is
removed from the debate and that the facts
are considered. The ERA believes that there
is a place for the sanction of disconnection.
The industry must retain its right to disconnect
customers who have the means to pay, but
put energy bills low on their list of priorities.
Disconnection is neither in the interest
of customers or energy suppliers, which
is why suppliers do not disconnect before
every effort is made to contact the customer
to allow them to continue their supply.
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Background Information
Identifying those who cannot pay vs. those who will not pay
There are two distinct elements
to this issue and they often become intertwined.
The first is disconnection, which refers
to the withdrawal of gas or electricity
supplies if a customer refuses to pay (i.e.
removing a right to energy supply to prevent
it being further abused). The second is
preventing vulnerable people from being
disconnected as a result of financial hardship
in paying energy bills.
Like other utilities, energy customers
pay for a product that is immediately used
and the retailer cannot demand its return
if it is not paid for. In other retail sectors
(e.g. food, clothing, electronics), the
customer is expected to pay before taking
ownership of the goods they desire. Failure
to pay would, of course, mean that the right
to have access to that service would be
withdrawn. As with any retail business,
energy suppliers maintain a right to restrict
access to services for those people who
refuse to pay their fuel bills and suppliers
will make every effort to recover the money.
Thus, it is important to differentiate between
those customers who cannot pay,
and those who will not pay.
However, with rising prices, higher taxes
and increased debt levels, it is unfair
that poorer people are having to subsidise
those who can afford to pay, but choose
not to. Such people are taking advantage
of the fact that energy is paid for after
it is consumed and is not retrievable.
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Steps to Preventing
Disconnection
All energy suppliers seek to avoid disconnections
at all cost and it is used as an absolute
last resort after a customer has received,
on average:
• Eight attempts to contact through
correspondence
• Two attempts to contact by telephone
• Two attempts to contact by personal
visit to property
• One attempt to contact by visit
to court, and
• A final attempt to contact before
a warrant is executed
In the majority of cases, customers
agree repayment methods, have a pre-payment
meter fitted or qualify for benefits through
the Fuel Direct scheme before such procedures
are initiated.
Top
Useful
Links
Money
Advice Trust
National
Energy Action |
