Pay as you go utilities

[wheresmyliveship]

Overheard a woman in a shop earlier who was attempting to put money on her gas but the shops pay point has broken. Post office had shut and she was left without hot water or heating for the night. Got me thinking about practicalities of such a set up, and to be honest, why they still exist. I mean, of course it means landlords have no liability for bills etc, but other than that...

Don’t even know what I’m asking, honestly, just thinking about that woman and how it’s not something she needs to be facing tonight.

They're used to collect debt. So a householder may put £10 on their key meter but £3 may be going to utility debt repayment and £7 for ongoing use. Utility companies usually install them as a last resort.

I have them, I have for years and it suits me, I make sure they are well topped up so wont run out, and it means I have no bills.
I have one bill to pay each month, and I can cancel that at any time, (Sky which includes Netflix, internet and phone), everything else is mine and paid for.

They're a no debt on mine at all, I have no debt or credit.

They are not used to collect debt.

They can be, if someone has a history of not paying their utilities, but in most cases they are used by people who for whatever reason cannot pay by direct debit. This may be because they rent privately and the landlord insists on key meters, it may be because they don't have a bank account able to accept direct debits, it may be that they are in a poor financial situation and can't afford a direct debit so need to use pay as you go.

The one thing utterly unfair about key meters is that they are often a higher price per unit than direct debit and key meter customers are often excluded from deals and discounts. For people on low incomes and/or benefits it is essentially a tax on being poor.

I can assure you I am most certainly not in debt. With utilita you can top up by phone with your bank card, and you have an emergency allowance too - I’m also rather certain that they don’t turn you off overnight or on sundays after about 5pm? Til 8am the next morning anyway - you just accrue debt in the meter

I have them and have since the day I moved out 20+ years ago. For me it has always been easier than unpredictable bills I know how much I use weekly/monthly generally keep them topped up with a decent amount but do get caught short occasionally. Works for me but when I was skint and young it was painful.

i moved into a place 6 months ago with a key meter, electricity only, and gigantic windows.

i learned a LOT about how often to top up, but have also had to do the schlep to a shop half a mile away when the one in the Co Op was broken.

in terms of actual costs, it has been astronomical even with the Warm Home Discount (i have arthritis), until i switched to Bulb a month ago. it is so, so much cheaper. now i am constantly surprised at how much i have left on the meter.

having spent the winter covering windows and buying blankets, it’s safe to say that i will be putting £20 a week away all summer so as not to be so poverty-stricken next winter.

Bulb don’t have smart meters in my area yet, but when they do i can have one and either go onto monthly direct debit or stay pay-as-you-go and top up online.

i was with Ovo/Boost whose mission statement is presumably ‘Rob the Poor and Disadvantaged’. cunts.

They are usually installed initially to collect debt from outstanding bills,e.g. each £10 you top up it takes £2 off the debt. But,you will often find that once you have been in debt with with a utility company,they are very unwilling to change the Meyer back to a quarterly payment,or once a month direct debit. This happened with me many years ago when I got into debt with my electricity bill,thanks to receiving 3 vastly underestimated bills in a row. Even when the debt was cleared,they were not willing to change the Meyer back,in case I got into debt again. Which is understandable,I suppose.
To be honest,I don't mind now,as it means that I'm not going to get walloped with a massive bill when I could least do with it. It used to be a bit tricky occasionally,finding places that did the key top ups,but over the last 10 years,places that do them have become far more widespread. The grocer's shop just next to where I live does them now. I just make sure that when I receive my PIP every 4 weeks,I put enough on for the next month so I'm not caught short.

The one thing utterly unfair about key meters is that they are often a higher price per unit than direct debit and key meter customers are often excluded from deals and discounts. For people on low incomes and/or benefits it is essentially a tax on being poor.

I had thought this but didn’t want to make presumptions. I couldn’t see any of our esteemed politicians having to queue at the post office to top up before having a bath, so it doesn’t surprise me that it disproportionately affects those on a lower income/tenants with less bargaining power.