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Bristol Post
Bristol Post
Business
Yvonne Deeney

Mum-of-three forced on to prepayment meter by Ovo after energy bill doubled within a month

A mother-of-three, whose youngest is still in nappies, says she was forced on to a prepayment meter after mounting up £400 of debt in less than two months. She believes that her energy provider Ovo energy, is acting outside of Ofgem regulations.

Mirna Mestrovic, who lives in Easton, decided to cancel her direct debit in September so that she would be able to buy school uniforms and food for her children. According to Ofgem regulations, energy companies should only install prepayment meters as a way of recovering debt as a last resort.

She tried to set up a payment plan but said the energy company went ahead with the prepayment meter anyway, which is a more expensive way of paying for power. She told Bristol Live that she feels like she is already struggling to cope financially and mentally after experiencing a recent trauma in the family.

READ MORE: Bristol prepares for a tough winter as the UK faces the biggest fall in living standards on record

Mirna, who had previously been paying £88 a month in electricity and £140 a month for gas, found her bills double over the past few months. She decided to prioritise school uniforms and food for her children and cancelled her monthly direct debit as she wouldn’t have enough money to cover everything.

Thirty days after her September bill was due she received a letter informing her that she would have a visit from a debt collector within the next seven days. At this point she contacted her energy supplier and followed its instructions in regards to setting up a payment plan with the charity Step Change.

She then called Ovo back and provided it with a reference number, only to find out a few days later that she would be put on a prepayment meter. Mirna called the firm back and made a formal complaint, to which the company replied that the process of converting her smart meter had already begun and cannot be changed.

Mirna said: “I haven’t paid for 50 days. I paid loads of bills in July and August so I decided to cancel it and pay what I can for September and October.

“I didn’t have enough money for food and I couldn’t cope with the bills. School was starting in September, I had to buy shoes and uniforms and I thought if I do that then I’m not going to have enough money for bills.

Mirna said she believed what Ovo was doing was illegal, adding: “I am in major distress. I feel like I’m going to have a breakdown, which I told them and they just kept sending threatening letters. I’m worried they will turn the heating off in the middle of winter with three kids when I am struggling to have enough money for food.

“They haven’t even offered me a payment plan. I called them and I followed the whole procedure to do a step change payment plan account and then they just ignored it and said I hadn’t even given them a reference number.

“I spent hours on the call and then they said that they don’t have it on their system. I’m so anxious about every letter and bill that comes through the door that I don’t even open them for a few days.

“I made a complaint and they wrote back to me and said, 'we apologise that your meter has been changed to pay as you go and you were not notified about it. The reason for the change is an outstanding balance, we suggest to remain on a pay-as-you-go meter until your balance is paid.’

“It’s affecting my health and I’m worried about what I’m going to put on the table for Christmas, if I’m even going to be able to buy a small present for the children. I don’t know if we’re going to be able to stay warm for all of December.

“It’s only the beginning of winter and I told them that we are going through this family tragedy and I’m already struggling to cope. I called mental health support just to speak to someone because I’ve been crying at night. I feel like they are pushing me over the edge. It's more expensive and I have to pay the debt through the meter.”

A September 2022 Ofgem review into how energy companies dealt with customers in financial difficulty found that Ovo energy was among those considered to have ‘minor’ issues. However an Ofgem report in 2018 found that in that year alone 84,000 prepayment meters were installed under warrant to recover debt, a move led by Ovo energy alongside British Gas and Utility Warehouse.

Ofgem noted at the time that companies were using this method too often as a way of recovering debt when it should only be used as a last resort, after a payment plan has been tried and failed. Data from Ofgem shows that in the last six months 60,000 new meters were installed - the first increase since 2019.

Those with prepayment meters could pay up to £300 more for their energy in the winter than those on direct debits because they are unable to spread the cost over the course of the year. Uswitch estimates that the average household on a prepayment meter will pay £50 more on standing charges.

In the past suppliers would need a warrant to install a prepayment meter but now they can automatically make the switch remotely through a person’s smart meter. The ease in which energy companies can convert smart meters means more people are at risk of being cut off during the winter months and forcing those already in financial difficulty to pay more.

Ovo energy has been approached for a comment

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