Glasgow City Council is to debate the use of pre-paid meters and the negative impact this can have on some consumers, especially vulnerable people.

Councillor Mandy Morgan has tabled the motion for discussion at next Full Council meeting this Thursday.

The North East ward representative said: “I’m concerned by reports from my constituents using pre-payment meters; some telling me that their energy supply has been terminated because of a lack credit on the meter or account.”

A recent Citizens Advice report confirms this ‘self-disconnection’ whereby consumers using pre-payment meters (PPMs) energy supply is terminated because of a lack credit on the meter or account. It also identifies ‘self-rationing’, where customers limit either energy use to save money, or restrict spend in other areas.

Councillor Morgan said: “Whilst it may seem odd to raise this now that we have come into the summer, this is the time when people will unknowingly disconnect. Many people using these PPMs don’t realise that they have to continuously top up the meters regularly to pay the daily standing charge. Come the autumn, they have to credit their meter with a larger amount to cover the debt that has accrued.”

Energy watchdog Ofgem has warned suppliers they must only install prepayment meters by force to recover debt as a last resort after new research revealed some companies are using such tactics too often.

Under Ofgem’s rules, suppliers must identify customers who are in or at risk of debt, and engage with them early to put them on manageable repayment plans. Prepayment meters must only be installed by force in a customer’s home using a warrant obtained by a court order as a last resort.

Councillor Morgan added: “Some constituents with mental health problems, go through periods in which they will totally disengage with their provider and accounts and may not have informal support networks they can rely on for support during this time, and find themselves in even more vulnerable circumstances. Government and the Energy companies have to address these issues.”

The Scottish Government is currently consulting on the Fuel Poverty Strategy for Scotland and Warm Homes Bill. Glasgow City Council is in agreement with the Scottish Government that fuel poverty should be calculated at 10% after housing costs.

The UK Parliament is in the final stages of the Electricity (Tariff Cap) Bill which will address some of the public’s concerns about utility companies’ practices and profits.

Councillor Morgan said: “I see these and Energy UK’s ‘Commission for Customers in Vulnerable Circumstances’ as an opportunity to address some of these matters. I’m calling on the Commission to come to Glasgow and hear from people experiencing fuel poverty and debt. New opportunities offered by Smart Meters to ensure vulnerable people stay on supply is one possibility. Energy companied have the opportunity and means to live up to their corporate social responsibility commitments and government must make sure they do so.”