Via Nick Costello --- What do you make of this? The Basics Card by another name? Prepayment meters recommended to tackle electricity bill shock KAREN COLLIER CONSUMER REPORTER HERALD SUN NOVEMBER 06, 2014 8:30PM PREPAY meter systems that cut off electricity when credit runs out should be offered to customers nationwide, a report recommends. An industry watchdog has thrown support behind the controversial measure, despite concerns it could encourage mass “self-disconnections” among struggling households. SMART METER COST BLOWOUT COULD SEE BILLS RISE BY OVER $500 HAVE YOUR SAY: Would a prepay meter help you? Would you get one installed? Let us know by leaving a comment in the box below. Prepayment metering is similar to prepaid mobile phone deals with recharged credit. It combines small, regular payments with real-time information about power use. The Energy and Water Ombudsman NSW believes the option could help some customers budget and avoid bill shock. “A prepayment meter system should be a choice available to all Australian energy consumers,” its report concludes. “Without overlooking the fact that some customers may self-disconnect regularly because of financial stress, we consider that prepayment meter systems can deliver benefit to some customers as they can reconnect supply at a much lower cost.” Some Tasmanian and Queensland customers use prepay meters, and the report suggests governments approve retail trials in other states. But a consumer group coalition, led by the Victorian Council of Social Service, fears it would be disastrous for vulnerable customers. “Prepayment meters give people a poorer service, and often encourage them to restrict energy use at the expense of their health and wellbeing,” they warned. Bill smoothing, Centrepay deductions, monthly or fortnightly billing, and prepay discounts for accounts kept in credit were less risky options that already let customers better budget for energy costs, they said. The Herald Sun revealed in August that the Coalition was investigating the possibility of a voluntary prepayment scheme linked to smart meters, on the proviso disconnections were avoided. “Such options must be carefully considered to determine what the benefits are for consumers and whether additional consumer protections may be required,” its latest energy statement notes.
Posted on: Fri, 07 Nov 2014 03:28:49 +0000