Energy regulator Ofgem has issued a warning to those on smart meters.
They warn that there is growing number of households who are being moved onto more expensive plans remotely, hiking up bills without warning. As the Express reports, energy firms can reportedly use smart meter technology to switch customers who are in debt onto a prepayment meter plan without even requiring a warrant (which is usually required to go into a house and install a prepayment meter box).
Prepayment tariffs are around six per cent more expensive than direct debit and the increase can leave households at serious risk if they have been switch to a new higher prepayment tariff.
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Over 152,000 households with smart meters were remotely switched to more costly prepayment plans by their energy supplier last year, according to new data from Ofgem, with 60,000 households being switched in just the past three months alone.
Speaking to the BBC, Kelly, explained that her bills increased from £200 a month to more than £430 as energy prices skyrocketed for millions of Britons amid an energy crisis.
The mother-of-two said she ended up in £1,000 in debt which receiving £230 Universal Credit a month and struggled with the surging prices.
She said: "I've been calling EDF on and off since January to sort it. Then I got a letter saying they would change me on to prepayment."
She tried to contact the energy supplier again and claimed that communication on their end was poor, leading to her case not being updated properly. By October, she was suddenly told that she was now on a prepayment meter plan.
She said: "I suddenly only had £3 on my electric until payday. I was so unhappy."
But EDF has stressed that switching customers on to prepayment meters is only used as "a last resort" after repeated efforts to come to an agreement and resolution with customers.
An EDF spokesperson told the BBC: "In this situation, moving a customer to pay-as-you-go will prevent them from continuing to accrue debt at an uncontrollable rate and prompt the customer to take control of their ongoing energy payments."
According to Ofgem rules, energy suppliers are required to have effective checks and balances in place when switching the payment plan of a smart meter.
Neil Lawrence, director of retail at Ofgem sent energy companies a stern warning: "Smart meter pre-payment switches are on the increase, and we do monitor that data. This should only be when it's safe and practical to do so, and smart meters should not be switched without those appropriate assessments taking place, including identifying vulnerability.
"Ofgem has written to all suppliers to urgently remind them of their obligations. Where they fail to do so, we will take action against them."
National Energy Action (NEA) has accused energy companies of “leaning on both smart and traditional prepayment meters as a revenue protection mechanism”.
Matt Copeland, from the NEA, said: “National Energy Action would like to see a moratorium on all prepayment meter installs this winter. Whether traditional or smart, the rules and safeguards that govern prepayment meter installs are equivalent. Suppliers must ensure that they follow them.”
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