Ofgem has announced that all UK household energy suppliers have agreed to a ban on forcibly installing prepayment meters in the homes of people over the age of 85. The industry regulator said that suppliers have signed up to a new Code of Practice which will also see them give customers more chances to clear debts.
Energy providers will need to make at least 10 attempts to contact customers as part of the new Code of Practice announced by Ofgem on Tuesday morning. Prepayment meters have been in the spotlight after some energy suppliers, including British Gas, were caught breaking into the homes of people struggling to pay their bills to forcibly install them.
Currently, energy companies can obtain court warrants giving them legal rights to enter people’s homes and fit prepayment meters if customers have not paid their bills. The practice has become more common as energy prices have soared during the ongoing cost of living crisis.
Ofgem chief executive Jonathan Brearley, said: “Ofgem’s new voluntary code of practice is a minimum standard that clearly sets out steps all suppliers must take before moving to a PPM.
“If and when involuntary PPMs are used, it must be as a last resort, and customers in vulnerable situations will be given the extra care and consideration they deserve, over and above the rules already in place, by suppliers – something that has clearly not always been happening.
“This new code of practice means for some people PPMs should never be installed, and for high-risk groups their energy needs must be protected with a higher level of consideration.”
Energy Secretary Grant Shapps has welcomed Ofgem’s new Code of Practice, he tweeted: “This is a step in the right direction – I welcome agreement from the sector to give redress to those wronged – an important step I’ve been requesting.
“Now @Ofgem and suppliers must put these words into action, so struggling families never again face such mistreatment.”
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