Energy firms who inappropriately switch customers to pre-payment meters could face legal action, the energy watchdog has warned. Ofgem has said it will review the checks and balances energy firms have around placing customers on pre-payment meters.
It has warned it will take further legal action if it finds they are not taking due care. In a blog, Ofgem chief executive, Jonathan Brearley, said he is concerned about the “sharp growth in households struggling to pay their bills being switched over to pre-payment meters, sometimes without their even knowing about it, leaving them without heating”.
It comes after Business Secretary Grant Shapps’ demand over the weekend that energy suppliers stop forcing financially-stretched households to switch to pre-payment meters. He also vowed to “name and shame” the worst offenders.