Prepayment Meters

4. Topical Questions – in the Senedd on 25 January 2023.

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Photo of Jack Sargeant Jack Sargeant Labour

(Translated)

1. What advice has the Counsel General given the Welsh Government on whether processing hundreds of court warrants at a time, allowing energy firms to install prepay meters without individual checks, is a breach of Welsh residents’ civil rights? TQ713

Photo of Mick Antoniw Mick Antoniw Labour 3:20, 25 January 2023

The Welsh Government believes that moving customers to prepayment meters should be considered only as a last resort. During a cost-of-living crisis, it is deeply concerning that some of the most vulnerable householders are being forced into repayment arrangements, leaving them exposed to the risk of having no heating. 

Photo of Jack Sargeant Jack Sargeant Labour

I thank the Counsel General for his answer, and the leadership of Welsh Government colleague Jane Hutt in this topic. This is nothing short of a national scandal. We have seen hundreds of court orders issued at a time, and now data shows that, out of the 500,000 applied orders for forced switching to prepayment meters, only 72 were refused. Out of 500,000, just 72 were refused. Nobody could suggest that this shows anything other than no checks are taking place to establish if the consumers are vulnerable. 

Now, because of this failure to carry out even very basic checks, vulnerable people are left with the constant threat of being cut off in the middle of a cost-of-living crisis in the middle of winter. Counsel General, this is a matter of life and death. The UK Government, which recognised over the weekend that something is going very wrong following consistent calls from the likes of myself and other campaigners, still choose to only ask the very companies who have so badly let our residents down just to do the right thing. Leadership is about taking decisions, especially when the evidence of wrongdoing is so overwhelming. Statistics show that almost 200,000 more people will be forcibly switched by the end of winter if nothing is done. Counsel General, do you support my calls for an immediate ban on the forced switching of prepay meters, and for those residents who have already been inappropriately switched by energy suppliers to be able to switch back, free of charge and quickly?

Photo of Mick Antoniw Mick Antoniw Labour 3:22, 25 January 2023

Thank you for the question, and again, the Member excels at raising issues of considerable importance to civil rights and liberties in our society. Let me give you these figures. It's only since you raised the question that this has been something I've really drawn my attention to, and I know it's the same, very much, for the Minister for Social Justice, who's been engaging directly on this particular issue.

But in terms of some of the data that we have already, we know from the media that there've been something like 500,000—half a million—warrants issued recently, and let's look at the Welsh situation from what we know so far. In Caernarfon magistrates' court in 2022, two such warrants were issued. In Cardiff magistrates' court in 2021, six warrants were issued and in 2022, 10 warrants were issued—a total of 16—and two were refused. In Swansea magistrates' court in 2020, 7,308 were issued, in 2021, 8,652 were issued and in 2022, 6,817 were issued, making a total, over those three years, of 22,777, of which, six were refused. 

I've been looking at some of the public information on this, and again, this is something that I do want to take up. I was just looking at some of the comments that have been made around the figures that are now beginning to appear, and the commentary is like this: 'suppliers are able to obtain warrants to install prepayment meters when their customers fall into debt as a way for them to recoup money they're owed. They're generally more expensive than fixed energy tariffs and have been criticised by numerous charities for trapping low-income households in poverty'  and 'they require households to pay for energy before actually using it, and usually on a higher rate'.

In further monitoring of this, it can now be revealed that the costs for the energy firms to gain permission to force entry are set at £22 per warrant, with courts granting up to 1,000 at a time in hearings lasting only 20 minutes. Then customers can be charged up to £150 for having a prepayment meter force fitted, including £56 for the warrant application. One investigation revealed how one court—this was in the north of England—granted 496 warrants that allowed firms to force entry into homes in just three minutes and 51 seconds. 

I think there is a real civil justice issue when people's homes can be so readily and so easily entered, forcibly, and I think it is something that needs to be considered. Unfortunately, justice is not devolved, but I can give the Member every assurance that, in conjunction with the Minister for Social Justice who's been following this issue so closely, I will not only take this up with those particular energy companies as to what is going on and why the courts are being used, many often probably tens if not hundreds of miles from where people actually live, but this is something that I think we can validly take up, of significant concern, with both the justice Minister of the United Kingdom Government, and I think, also, with the Attorney General, just to examine and to consider the approach that the courts are adopting to basically receive spreadsheets of names and rubber stamp warrants en bloc. I think there are some very significant issues that need to be explored further, and I'm sure that we will seek to take that up in every way. Thank you for bringing this matter to our attention. 

Photo of Peredur Owen Griffiths Peredur Owen Griffiths Plaid Cymru 3:26, 25 January 2023

The Senedd has already heard from Jack about how unfair forcible installation of prepayment meters are; I endorse his points wholeheartedly. Prepayment meters are disproportionately prevalent in the social housing sector, which means that tenants on some of the lowest income bands in the country are having to pay the highest energy tariffs. It's incredibly perverse that those with the least are being forced to pay the most for energy. This means that families in poverty have been forced to shiver through the recent cold spell because they cannot afford to put the heating on. It is an outrage. If we cannot protect our citizens in Wales from the predatory practices of energy companies, then we should make it a priority to win that right.

We have already seen that Westminster will not act against the energy companies. Whilst people struggle to heat their homes, suppliers are continuing to make record profits on the back of soaring energy bills. The staggering speed at which courts are issuing warrants, as you've mentioned, often in a matter of minutes at a minimal cost to the energy companies, gives next to no legal recourse for customers to challenge their decisions. This is exploitation on an industrial scale. There should be an immediate ban on such practices. I urge you to look at this matter to see if there is any way that we can curb the exploitation of our citizens at the hands of energy companies. Diolch. 

Photo of Mick Antoniw Mick Antoniw Labour 3:27, 25 January 2023

I thank the Member for those additional comments. Just for the record, I think there are approximately 200,000 households in Wales that have prepayment meters for their mains gas and electricity. The Member has made his comments very, very forcibly, which I think add to all the other comments that have been made, and I'm sure that we'll all want to work collectively across all political parties to see that this is looked into, and to see that people's rights and protections are properly supported. 

Photo of David Rees David Rees Labour 3:28, 25 January 2023

(Translated)

Thank you, Counsel General. The next topical question is to be asked by James Evans.