With regards to the recent news that all customers of energy companies in England will be given a £200 loan from the Government to be repaid over following years.
I would like to state that I do not want this loan. I have not asked for this loan and I certainly do not want the government interfering in my financial affairs. I do not wish my energy company to transfer the loan to my account, nor take repayments from my account in the future, and I shall be writing to them to this effect.
I have several reasons for this decision.
1. I have not given the Government permission to provide me with a loan. Legal requirements within the Consumer Credit Act require both the lender and the applicant to accept the written terms and conditions relating to specific transactions. I have not received contractual paperwork and would not sign an agreement, should I be provided with one. Without such an agreement, I believe the imposition of a compulsory loan would be unlawful.
2. Since the most vulnerable in society are much more likely to be using pre-payment meters for their energy supplies, this loan scheme is completely misguided. Such people do not receive or pay bills, so cannot be helped through this proposed plan. Please reconsider and change this.
3. Since I am a customer on a fixed rate tariff my unit costs for energy will not rise in April when the government removes its cap. Therefore I do not need a loan to help me.4. Within my contractual agreement with my energy company, there is no reference to the provision of credit from third parties without the consent of the customer. If the government continues with this course of action, it could cause contractual problems for the energy companies.
This imposition is of great concern.
For the Government to create a situation where they can enforce financial debt upon citizens, then control their personal finances – through their energy account – to repay a debt they have neither wanted nor authorised, is a worrying authoritarian development in the relationship between the state and the citizens of this country.”
Mike Wilce
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I am on a pre-payment meter. My electricity costs have almost doubled in the past 6 months alone and I am now off work on long term sickness. That means I will have to spend more time at home, using power I would not have used before. The last month alone in a single bedroom flat has cost me nearly £100 and I simply cannot afford that sort of bill on UC benefits.
I have had to cut back on heating, lighting (sitting in the dark more often), even cooking (eating cold meals instead of hot ones more often) and the bill is still crippling.
Giving me a “loan” that I still have to pay back is counter productive as I can’t afford to pay the current bill, let alone a loan on top.