Big energy companies should be forced to carry out rigorous checks before forcibly installing prepayment meters, a regulator has said.
Energy watchdog Ofgem has launched a consultation to make protection mandatory as part of energy suppliers' licence conditions. This move follows incidents where some suppliers, including British Gas, were found to be breaking into the homes of customers who couldn't afford their bills to forcibly install prepayment meters.
A voluntary code of practice, introduced in May and signed by all UK household energy suppliers, already prohibits the forced installation of prepayment meters for people aged 85 and above. The new proposals aim to establish stricter guidelines, requiring energy suppliers to make at least 10 attempts to contact a customer and conduct a site welfare visit before considering the installation of a prepayment meter. Ofgem wants to transform these voluntary arrangements into legally binding requirements.
Neil Kenward, director for strategy at Ofgem, emphasized the importance of robust protections for vulnerable customers. He said: "We are committed to ensuring robust protections are in place for vulnerable customers. The voluntary code of practice for prepayment meters enhanced protections, setting clear rules for when a prepayment meter is or isn’t acceptable, as well as new requirements around the installation of prepayment meters. We are now seeking to make these voluntary arrangements binding, and we welcome all views on this statutory consultation."
Ofgem argued that stricter measures would require utility firms to follow a strict assessment process before forcibly installing a prepayment meter, as well as ensuring higher standards of aftercare support.
Additionally, Ofgem suggested that suppliers should be compensated for providing additional support credit (ASC) to the most vulnerable prepayment meter customers. Mr Kenward added: "Some of this credit may not be repaid, but energy suppliers do not currently get compensated for this cost – the allowance aims to fix that, ensuring suppliers have no excuse not to offer ASC to customers in need this winter. We will be monitoring levels of ASC provided by suppliers."
The move comes as households grapple with soaring energy costs due to a combination of factors, including rising global gas prices and the economic impact of the COVID-19 pandemic.
The consultation on the code of conduct will be open for responses until July 26. Ofgem aims to reach a decision and publish its findings by winter this year.
*You may notice the below message on a small number of Manchester Evening News articles. We like to innovate and this is part of a trial to look at whether AI can help speed up the publishing process, We will always declare where this happens.
This article was crafted with the help of AI tools, which speed up the MEN's editorial research. A Manchester Evening News editor reviewed this content before it was published. You can report any errors to newsdesk@men-news.co.uk*
