Energy key meters - why?
By Value hunter on Nov 28, 2009 | In In real life, Money chat, In the home, Bad business, Frugal wars, What is the point?
I have been battling with Eon and British Gas for more than 12 months now, regarding their cheating (strong word but needed in this case) us out of money!
We pay by smart card, like a credit card with a chip built into it.
It is easy enough, we visit our local garage on payday, putting on a months credit on gas and electricity.
It suits us just fine, we pay in advance for our energy, we don't have any arrears, we don't have any sudden changes in direct debit amounts, and the added bonus, we only pay for what we have bought and no more.
Last year both gas and electricity companies, started sending us a six monthly "statement" - showing that we owed them money!
"Not to worry" they calmly informed us, "it will even itself out over the year!"
NO IT WILL NOT!
Their reasoning for taking money off us in the form of paying for these new arrears, is that because we buy our energy monthly, should the price increase 2 weeks into a month, then we owe them the extra amount of the increases! (Can you believe the cheek of these two companies!)
My argument is simple:
We pay in advance, when I purchase my gas and/or electricity, we pay the price it is then - we could buy £10 or £10,000 it matters not. Our till receipt is our sale of goods contract, we have purchased an amount of energy at the price when I visit the shop and credit our smartcard. The till receipt is a legally binding contract, the energy companies are bound by it, to provide an amount of energy for the price paid.
They are not allowed to increase the price of the goods (in this case, the number of energy units) two weeks down the line - how many times have you purchased a washing machine and then been sent a letter by the store stating the price has increased and you owe them an extra £10-£20? Nope, it has never happened to me either!
The fact is the company wouldn't be able to get away with it under the sale of goods act.
The same is true when buying a car, buying a sofa, etc. The till receipt is a legally binding contract between the customer and the company.
So why are energy companies being allowed to get away with this malpractice?
You tell me, for a year I have been unable to find out why!
Now you have the background, you will understand why I am wary of the new changes to smartcard meters that are being brought in by energy companies.
The smartcard is being phased out and an "energy key" method of payment is being brought in.
British Gas were on the news this week, telling us how these key meters will allow them to get more information so they can "help customers better" - yeah right, since when did a national company help people and save them money? Exactly, it is never happening!
The new key meters will store meter readings on them, give the energy company more information about how much energy the individual household is using. Here's what e-on are telling their customers:
- key meters are more reliable and last longer - we have had one single repair in 12 years
- they will result in fewer call outs for repair - one call out in 12 years? hardly breaking the bank is it?
- The key gives them a meter reading every time it is topped up, so no need for a member of staff to call round and read the meter or send a rep round to your home - so less staff need to be employed, which means less costs for the company, which means that my energy bill will be reduced? Not a chance!
The work required takes only 30 minutes to complete, an appointment will be arranged to suit me.
So I will still have to visit my local shop and buy credit on the key (same as I did with the smartcard) so what will I get out of this new technology?
Will I get cheaper bills? Definately not!
Will I get a more convenient service? Nope - I'll still have to travel to the same place to buy my energy.
So what is in it for them?
Knowledge is power, Tescos - Boots seem to do very well with knowledge of their customers, even in a recession, their profits increase, so what are the energy companies up to? I don't trust them....
No feedback yet
« Christmas songs | Toy quality is very poor » |