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Highlights:
- Energy companies are reportedly switching meters from the credit system to prepayment mode without following due process.
- Campaigners have been seeking a ban on such installations, including through court orders.
Even as companies are rushing to install prepayment meters (PPM) for domestic consumers, many are against the move. Campaigners have been seeking a ban on such installations, including through court orders, amid fears that energy companies may use them to disconnect indebted customers.
The End Fuel Poverty Coalition has claimed that putting households on prepayment meters forces many vulnerable customers to "self-disconnect" and not use energy due to the soaring bills. Notably, the licence conditions for energy firms in the country prevent them from formally disconnecting such customers.
Image source: © Lovelyday12 | Megapixl.com
Energy companies reportedly switch meters from a credit system to prepayment modes without due process. Recent figures from UK's energy watchdog Ofgem suggest that 152,000 households with smart meters were moved to more expensive PPM plans remotely last year. In the past quarter alone, 60,000 homes have been migrated.
Another campaign group, the Good Law Project, is looking to challenge remote migrations. The End Fuel Poverty Coalition has urged people who their energy suppliers have contacted regarding the installation of prepayment meters to reach out to them.
Kalkine Media explores some London-listed energy stocks in the wake of this news.
Centrica Plc (LON: CNA)
The FTSE 100 constituent is in the business of providing electricity and gas to domestic and corporate customers. It holds a market cap of £5,593.79 million, and its EPS (earnings per share) is at 0.21 as of 29 November. The stock price has jumped by nearly 50% over the past year. CNA stocks were trading at GBX 94.94, up 0.13% as of 8:27 am GMT on Tuesday.
Drax Group Plc (LON: DRX)
Drax Group is an FTSE 250 constituent. It generates and sells renewable electricity to businesses and also produces sustainable biomass. The company holds a market cap of £2,387.86 million, and its EPS stands at 0.20 as of 29 November. The stock price has jumped by 5.84% over the past year. Shares of DRX were trading at GBX 597.50, up 0.34% as of 8:36 am GMT on Tuesday.
Telecom Plus Plc (LON: TEP)
Telecom Plus is a British multi-utility firm that belongs to the FTSE 250 index. The company enjoys a market cap of £1,975.68 million and an EPS of 0.45 as of 29 November. Its return for the past year stands at a whopping 72.89%. TEP shares traded 0.40% higher at GBX 2,500.00 as of 8:39 am GMT on Tuesday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
