The Pre-Pay Electricity - a Sign of the Times

The Queen of England

I got a leaflet through the door today from Prepower.ie - a company that is supplying "pre-pay electricity meters". Basically, they install - for free - a meter for which you buy credit, then enter your pre-paid code to top up your electrical supply service.

They claim that it's a way of "staying out of debt" & "saying goodbye to electricity bills forever".

It looked dodgy to me, so I did a bit of research & compared their charges to the rates I pay myself with Airtricity. At present, I pay 15.91 c per kWh. They charge 16.999 per kWh for the same supply. The Public Service levy is the same, however when you add the more expensive standing charge, the additional "Prepayment Service Charge" they add on, I worked out that if I were to switch to them from Airtricity, it would cost me an extra €250 per year based on my current average electricity usage.

It's not significant money to me, but I'd rather have it in my pocket than theirs.

What is worrying though, is that they are selling this - by implication more than by directly saying it - as a way to save money. As they charge more than their competitors for exactly the same product, I can't see how something like this would be a money saver.

The usage of electricity is unavoidable, so the only real way the only real way to reduce your costs are to use less of it. This isn't really a way of "saying goodbye to electricity bills forever" - it's just a different way of paying them at a more expensive rate and if you are having trouble paying your bills, adding to the cost of them by paying unnecessary additional charges to this company certainly isn't a way of "staying out of debt".

This to me seems no more than a way of trying to siphon money off people who can ill afford it.

Richard Hillman

It has been around for years in fairness. Possibly even pre the turn of the century.

Sparks43

Shocking :eek:

The Queen of England

Richard Hillman wrote: »

It has been around for years in fairness. Possibly even pre the turn of the century.

It reminds me of those meter boxes landlords used to install in bedsits where you'd have to feed them with coins to keep the electricity going.

It's just a more high-tech version of the same poverty-trap shite that went on years ago when we wus all poor.

Cupcake_Crisis

The Queen of England wrote: »

I got a leaflet through the door today from Prepower.ie - a company that is supplying "pre-pay electricity meters". Basically, they install - for free - a meter for which you buy credit, then enter your pre-paid code to top up your electrical supply service.

They claim that it's a way of "staying out of debt" & "saying goodbye to electricity bills forever".

It looked dodgy to me, so I did a bit of research & compared their charges to the rates I pay myself with Airtricity. At present, I pay 15.91 c per kWh. They charge 16.999 per kWh for the same supply. The Public Service levy is the same, however when you add the more expensive standing charge, the additional "Prepayment Service Charge" they add on, I worked out that if I were to switch to them from Airtricity, it would cost me an extra €250 per year based on my current average electricity usage.

It's not significant money to me, but I'd rather have it in my pocket than theirs.

What is worrying though, is that they are selling this - by implication more than by directly saying it - as a way to save money. As they charge more than their competitors for exactly the same product, I can't see how something like this would be a money saver.

The usage of electricity is unavoidable, so the only real way the only real way to reduce your costs are to use less of it. This isn't really a way of "saying goodbye to electricity bills forever" - it's just a different way of paying them at a more expensive rate and if you are having trouble paying your bills, adding to the cost of them by paying unnecessary additional charges to this company certainly isn't a way of "staying out of debt".

This to me seems no more than a way of trying to siphon money off people who can ill afford it.

That's actually surprising. My mam was talking about getting this in the other day as the bills are quite high, she can ill afford for them to be bloody higher!

squod

The Queen of England wrote: »

This to me seems no more than a way of trying to siphon money off people who can ill afford it.

Companies doing this since the nineties in Dublin. Pre-pay codes and cards and such. I'm shure Irish wáh-ter will be at it too.

Gatling

Nobody remember coin meters now I feel old ,
A lot of social housing have been using prepay electric and gas for as above forever ,
There is an advantage you pay what you use and you can monitor usage ,where bill pay you wait for the bill to arrive then you get 4weeks to clear said bill before the next household bill arrives that could be TV broadband and phone who expect to be paid within 4 weeks ,if your unemployed or get laid off which is easier,
The same for families on low income ,
Till your faced with the choice which gets paid or what get's sacrificed to keep the lights on or the heating I wouldn't knock it

Chuck Stone

Watt?

fussyonion

I have a pay-as-you-go meter which I had installed by ESB as I was having trouble paying my bill and I've never looked back.

I like the fact that I'm in control of how much I top up by, when I top it up and I can see how much I have left.

I dreaded getting a bill every two months and I found it hard paying it.
I've worked out that actually it's cheaper having the meter.

I buy €10 a week which lasts AGES and there's always the emergency €5 credit there if you need it.

ESB take their cut and put it towards the bill I owe them and that's fine by me.

I also find myself switching off things more and really, I think it's a good option for people who want to take control of their spending and not having to worry about mammoth bills coming in.

Sully

Doesn't the ESB offer this without a change to the plan your on, no? They did when I was growing up anyway, put in a pound coin for electricity! Fairly sure some holiday homes use it also!

Cupcake_Crisis

But what if the meter runs out in the middle of the night and your internet goes.......THEN WHAT?!?!?!?!

The Backwards Man

Does anyone still have the 50p meters? When I was young I put all my piggybank money into a neighbour's for the laugh. Bastard still hasn't paid it back.:mad:

FoxT

Cupcake_Crisis wrote: »

But what if the meter runs out in the middle of the night and your internet goes.......THEN WHAT?!?!?!?!

3G stick in laptop?

squod

Sully wrote: »

Doesn't the ESB offer this without a change to the plan your on, no? They did when I was growing up anyway, put in a pound coin for electricity! Fairly sure some holiday homes use it also!

The option is there to use pre-pay cards for most (credible) suppliers. You can also pay the old fashioned way and deposit money into an account with your name/acc number on it. You loose your on-line payment discounts though.

Chucken

The Queen of England wrote: »

I got a leaflet through the door today from Prepower.ie - a company that is supplying "pre-pay electricity meters". Basically, they install - for free - a meter for which you buy credit, then enter your pre-paid code to top up your electrical supply service.

They claim that it's a way of "staying out of debt" & "saying goodbye to electricity bills forever".

It looked dodgy to me, so I did a bit of research & compared their charges to the rates I pay myself with Airtricity. At present, I pay 15.91 c per kWh. They charge 16.999 per kWh for the same supply. The Public Service levy is the same, however when you add the more expensive standing charge, the additional "Prepayment Service Charge" they add on, I worked out that if I were to switch to them from Airtricity, it would cost me an extra €250 per year based on my current average electricity usage.

It's not significant money to me, but I'd rather have it in my pocket than theirs.

What is worrying though, is that they are selling this - by implication more than by directly saying it - as a way to save money. As they charge more than their competitors for exactly the same product, I can't see how something like this would be a money saver.

The usage of electricity is unavoidable, so the only real way the only real way to reduce your costs are to use less of it. This isn't really a way of "saying goodbye to electricity bills forever" - it's just a different way of paying them at a more expensive rate and if you are having trouble paying your bills, adding to the cost of them by paying unnecessary additional charges to this company certainly isn't a way of "staying out of debt".

This to me seems no more than a way of trying to siphon money off people who can ill afford it.

Ive had Electricity Bills in my name for about 35 years. I changed to prepay power because it does work!

My bill has gone down 10euro a week.

It does keep you out of debt. Airtricity etc are asking for 300e to go away from direct debits, this meter is free.

Cupcake_Crisis

FoxT wrote: »

3G stick in laptop?

Wizardry!!

FoxT

Good post, OP. It is a trend in a number of service areas , though.
The following are other examples of things that are more expensive in the longer term:
- Cellphone PAYG
- Fixed rate mortgages
- buying phones on contract
- gift vouchers/groupon-type vouchers, etc
- buying cars with down payment, fixed monthly cost, then balloon payment


All offer convenience in some way. Often the convenience comes from, say, having fixed outgoings every month. This may help people budget,but there is a price to pay for it, and the true price is rarely obvious, and can be quite unpredictable.

princemuzzy

Cupcake_Crisis wrote: »

But what if the meter runs out in the middle of the night and your internet goes.......THEN WHAT?!?!?!?!

aparently they dont cut you off between 6pm and 8am but the cost you run up gets taken from your next top up

some people havent a choice so people taken the piss out of it need to cop on

that been said i looked at it a while ago and found it is more expensive so once i got on top of my bill i now religiously pay 15 quid a week off my bill and i am now in credit with esb to the tune of 100 snots

FoxT

Chucken wrote: »

Ive had Electricity Bills in my name for about 35 years. I changed to prepay power because it does work!

My bill has gone down 10euro a week.

It does keep you out of debt. Airtricity etc are asking for 300e to go away from direct debits, this meter is free.

The meter cannot be free. The company that installs the meter has to buy the meter & pay a man in a van to go install it. There is a cost there, and you, the consumer, pay it. The cost is often hidden, though, and it can be impossible for the consumer to quantify it.

Chucken

FoxT wrote: »

The meter cannot be free. The company that installs the meter has to buy the meter & pay a man in a van to go install it. There is a cost there, and you, the consumer, pay it. The cost is often hidden, though, and it can be impossible for the consumer to quantify it.

I am the consumer! My dd was 45 a week, now I pay 35e.

I win.

I'll add here, if you get worried about your electric bill and ask your provider to help with a meter, they will tell you you that you need to be 2-4 bills in the red before they will consider it

kneemos

Chucken wrote: »

I am the consumer! My dd was 45 a week, now I pay 35e.

I win.

I'll add here, if you get worried about your electric bill and ask your provider to help with a meter, they will tell you you that you need to be 2-4 bills in the red before they will consider it

€45 a week?have you got a pot farm in the attic?

mikemac1

Used to rent a bedsit in Drumcondra, one of those grand old houses divided up into flats.

Landlady was robbing us all blind! :mad: 2 euro coins only on the meter and you'd be pumping in the money on a Sunday night trying to wash & dry your clothes for work the next day.

Saved up my 300 euro deposit, called ESB Networks and have paid direct debit ever since.
Didn't ask permission but no way was I talking no from the landlady. Better to seek forgiveness then seek permission



I think ESB offer you the pre-pay meter if you're struggling. Themselves and the other suppliers are cracking down on debt hopping - oweing money to maybe ESB then skipping to Airtricty and then skip elsewhere too.

Run up arrears and you get flagged

You will be flagged if you are more than 42 days and €250 behind

Are the days of debt hopping over?

StillWaters

Sully wrote: »

Doesn't the ESB offer this without a change to the plan your on, no? They did when I was growing up anyway, put in a pound coin for electricity! Fairly sure some holiday homes use it also!

ESB will only install if you are in arrears. The electricity and charges are the same with them if you have the prepay as if you pay in the usual way.
It's the other crowds such as prepay that charge more per unit and high service charges.

Anyone struggling with their bill, would be better off going into arrears and getting the ESB meter.

Cushie Butterfield

The Queen of England wrote: »

It looked dodgy to me, so I did a bit of research & compared their charges to the rates I pay myself with Airtricity. At present, I pay 15.91 c per kWh. They charge 16.999 per kWh for the same supply. The Public Service levy is the same, however when you add the more expensive standing charge, the additional "Prepayment Service Charge" they add on, I worked out that if I were to switch to them from Airtricity, it would cost me an extra €250 per year based on my current average electricity usage.

It's obviously not the way to go for you, but they don't claim to be cheaper than Airtricity - as far as I can see their price comparison is with Electric Ireland. Their prices, PSO levy & standing charges are the same as Electric Ireland. The only difference is their 37.5 cent per day prepayment service charge (€137 per year).

Of course it's not for everyone, but there is no connection, disconnection or re-connection charges like with Electric Ireland & Airtricity. If you run out of credit & are cut off you just top-up & you're on again. Electric Ireland & AirTricity won't give just anyone a meter either - you have to satisfy certain conditions.

I would say that switching to them would suit some people, even if it is €137 per year more than Electric Ireland, who, going by your calculations are ripping people off also compared to Airtricity!

jjbrien

There is another option people can use instead of these prepay meters. I am on Level Pay with board gais I pay 84 euro a month so 21 euro a week. They spead my bill out over the year makes it real easy to pay. I always know what that it will be 84 euro so makes it dead easy to budget. I get the online and direct debit discounts too so its happy days for me.

For those on welfare if they go on level pay and then use the house hold budget service from an post. An post will take whatever amount the customer wishes out of their welfare towards the bill and you never have to pay the direct debit.

Grayson

I briefly moved into an apartment lasy year that had a prepay meter. It was annoying as hell. I had no idea how much to top up by at the beginning of the month. The meter was outside so I'd have to go out in the cold to pop it up and I couldn't check online.

MurdyWurdy

kneemos wrote: »

€45 a week?have you got a pot farm in the attic?

Was just thinking this. My last bill was €90 for 2 months!

Capt'n Midnight

poverty trap stuff indeed

most of this sort of thing happens first in the UK and gets advertised heavily here when the UK regulate it


The meter and installation costs money. The company can only make money if they charge the customer enough extra to pay for all that. And these are targeted at people who already use less electricity than average.

That alone should scare people away



if you can buy credit in a shop the shop will be getting a 5-10% cut too.




Also be aware of one very important aspect of pre-pay

you have no electricity / water the instant the money runs out, there are no reminders or warnings before you get cut off. You can't negotiate with a meter

goose2005

The Queen of England wrote: »

It's just a more high-tech version of the same poverty-trap shite that went on years ago when we wus all poor.

How is it a poverty-trap to stop people going into debt?

The Barefoot Pizza Thief

Seen a guy in Smithfield asking people to top up his card or he would be without electricity for the week. There is a minimum of a tenner, so doubt he was successful. Didn't have one myself at the time, but do now. Hate using the emergency €5 as it makes some high pitched racket initially when you hit zero and a euro or so before also.

Tiddlypeeps

I can see the appeal in the prepay thing, even if it is more expensive. When you have more going out than you have coming in it can be very easy to pay for the things that need to be paid today when another bill is off in the distance and out of mind. Both have to be paid but one seems like a higher priority because it's needed now even tho electricity is probably a much higher priority. When the bill comes around then you don't have enough to cover it. I would have much preferred this option in my student days.

FoxT wrote: »

Good post, OP. It is a trend in a number of service areas , though.
The following are other examples of things that are more expensive in the longer term:
- Cellphone PAYG
- Fixed rate mortgages
- buying phones on contract
- gift vouchers/groupon-type vouchers, etc
- buying cars with down payment, fixed monthly cost, then balloon payment

How are even half of these things more expensive in the longer term?

If you have to top up multiple times a month then sure PAYG is probably more expensive, but only if you are stupid about it. Some people would barely go through €10 credit a month or less, it's clearly a cheaper option for those because bill pay is a minimum of €20.

Fixed rate mortgages can be cheaper, but it's a gamble that essentially comes down to a roll of the dice. It's also the opposite of the prepay thing because with a fixed rate the rate is always higher than the current standard. You are essentially betting the bank that interests rates are going to go higher than the rate they offer.

Buying phones on contract makes sense if the minutes suite you and the cost of the bill is what you would have been paying anyway. At that point it's essentially a free phone.

I have no idea how groupon types vouchers cost more in the long term. They offer something that would normally cost more for less. I recently bought a voucher for dinner in a place I was going to go to anyway, would have cost about 70 for what I paid 30 for. How will I end up paying more for that in the long run?