The government has announced that every energy company in Britain has promised to no longer forcefully install prepayment meters in vulnerable customers' homes.
While the practice itself goes against energy regulator rules, there were growing concerns that some suppliers were still using the practice. Companies need a warrant before they are able to forcibly enter someone's home and install a prepayment meter - magistrates have already been told not to issue such warrants anymore.
It comes after a Times investigation revealed that the shady practice was recently being used by a British Gas subcontractor. Since the report, energy regulator Ofgem launched an investigation while ministers have been demanding better practices from energy suppliers.
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The Department for Business, Energy, and Industrial Strategy said it has asked all suppliers to make it clear how they are supporting their customers, how many warrants to enforce prepayment meters they have applied for, and how they will compensate for any wrongdoings.
In an interview on LBC which is set to be broadcast on Friday evening, Akshay Kaul, a director at Ofgem, said: “I think if prepayment meters have been incorrectly installed, that is not in compliance with the rules, and that is what the investigation ultimately concludes, then yes, then consumers have a right for them to be uninstalled, if that is what they wish.
“They have a right to seek compensation, and that is what we will be asking any suppliers that are in that situation to do.”
Energy Security Secretary Grant Shapps said: “All suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game when it comes to their reviews. But I am angered by the fact some have so freely moved vulnerable customers on to prepayment meters, without a proper plan to take remedial action where there has been a breach of the rules.
“So, I have only received half the picture as it still doesn’t include enough action to offer redress to those who have been so appallingly treated.”
Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: “The Secretary of State is right to push for urgent action to protect vulnerable consumers.
“An immediate halt to forced installation of prepayment meters must be followed quickly with clarity on how many vulnerable households shouldn’t have had these meters installed, a suitable compensation package imposed by Ofgem, and then a full review of the prepayment market to see whether or not it can work for consumers and not just for suppliers.
“There are over four million households in England and Wales on a prepayment meter. They’ve had the rough end of the energy market for far too long and many have struggled most to redeem UK Government support during the energy crisis.”
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