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NEA warns of Prepay Scam
8th September 2010
National Energy Action, the UK's only fuel poverty charity, is warning prepayment meter customers to be extremely vigilant if approached with offers of cheap credit.
The warning comes after it emerged that more than 85,000 prepayment customers have been sold 'black-market' top-up credit at discounted prices, only to find that their electricity supplier can identify this illegal practice and they have wasted their money.
Maria Wardrobe, Director of Communications for National Energy Action, said, "The fact that so many people have been tricked or tempted by this scam illustrates the difficulties faced by prepayment customers who are often most likely to be struggling with their energy costs.
"There are currently more than 3.6 million prepayment electricity meters in Great Britain: 60% of households using these meters are classed as vulnerable and the meters are increasingly being installed for debt recovery; last year some 250,000 electricity prepayment meters were installed in response to existing debt.
"To be charged twice for the energy after falling victim to this fraud will impose a considerable strain on those who are already unable to afford their bills and we are urging consumers to "Top Up Safe" using only legitimate and recognized systems such as PayPoint or Payzone."
The scam involves organised criminals, often posing as supplier representatives, offering discounted credit on top-up cards. Once the payment is on the meter it can be recognized by the energy companies who are then billing for the fraudulent credit, meaning consumers are paying twice.
Ms Wardrobe continued "It is a great concern that consumers are being targeted in this manner, and it is certainly an issue we will be addressing at NEA's national conference being held next week in Liverpool, as we meet with nearly 300 key stakeholders across the energy industry to debate fairness and social justice in relation to energy policy.
"We need people to know that there is help out there for consumers struggling with their energy costs and we recommend that anyone who is anxious about their bills should call the Home Heat Helpline on 0800 33 66 99. Calls are free of charge and customers should receive expert and sympathetic advice from qualified staff."
