A stricter code of practice on when prepayment meters can be forcibly fitted to recover debt have been announced by energy regulator Ofgem, following a temporary ban earlier this year.
However, campaigners are arguing that the the new measures don't go far enough to protect vulnerable households from having the meters installed against their will.
All energy suppliers have agreed to sign up to stricter rules for prepayment meters, following a report by Ofgem triggered by an investigation by The Times newspaper, which found debt agents acting on behalf of British Gas were forcing entry into the homes of vulnerable people.
Read more: Prepay meter customers hit with shock energy bills for hundreds of pounds
Under the new code of practice announced today, suppliers will no longer be able to forcibly install a prepay meter on the highest risk customers including:
Households which require a continuous supply for health reasons
Households over 85 years of age if there is no other support in the house
Households which contain a person with severe health issues including terminal illnesses or those with a medical dependency on a warm home
Households where there is no one that has the ability to top up the meter due to physical or mental incapacity
Other changes include:
- Representatives acting on behalf of suppliers will now have to wear body cameras or audio equipment when they visit the home of a customer as part of the measures announced today.
- Energy firms will now have to make at least ten attempts to contact a customer going forward, and conduct a “site welfare visit” before installing a meter
- if someone is forced on to a prepay meter - either by warrant or remotely - they will now be given £30 of credit initially to reduce the risk of them losing supply.
Suppliers have been told to identify where meters were wrongfully installed, and to return the customer to their previous tariff and offer compensation.
Four million households are on a prepayment or Pay As You Go (PAYG) meter, and 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 cost of living crisis.
Prepayment meters are typically installed in the homes of the UK's poorest families, many of who have fallen behind on their bills. Customers must then top-up their meter in order to keep receiving their energy supply, or risk being cut off. But these are more expensive than paying for direct debit, Chancellor Jeremy Hunt is ending the “prepayment premium” by making sure these customers will pay no more than someone paying by direct debit.
However, this does not start until July, leaving families more at risk of falling further behind on their bills.
Some campaigners have called for a total ban on forcible installations instead and said the new rules won't help everybody. Campaign groups and charities criticised the new guidelines for not going far enough, highlighting that those in their early 80s or with debilitating illnesses could still find themselves facing forced installations.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "What about elderly people below the age of 85? Also some disabled people could still miss out - people using power to charge their wheelchairs, for example. There will be people who aren't covered.
"There are really vulnerable groups which have been omitted from its full level of protection and we have serious concerns about how it will be implemented, such as how people will prove their medical conditions without being humiliated by an energy firm health inspection”
And disability charity Scope is calling for the forced installation of meters and remote switching to be banned outright for disabled people. Jessica Leigh, head of policy, told BBC Radio 4's Today programme: "“They haven’t gone for an all-out ban. And I think what’s really worrying is when you look at the code of practice, there are grey areas, there are gaps. That is a cause of concern for us. We know energy suppliers really sank quite low even when there were rules in place in some of their practises so any room for manoeuvre, anything they can manipulate is worrying.”
Jonathan Brearley, chief executive officer of Ofgem, 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 prepayment meter (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. We expect the overall number of involuntary PPM installations will fall over time, and we recognise that a careful balance is required to help manage debt, while protecting customers in vulnerable situations.”
Citizens Advice, which was consulted on the changes alongside energy suppliers, said the new guidelines were an “improvement” but called on Ofgem to make them mandatory.
“It’s now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice,” said Dame Clare Moriarty, chief executive of Citizens Advice. "For too many the damage has already been done. Suppliers must now check that none of their existing customers are paying for their energy via a pre-pay meter when it’s not a safe option for them.”
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