With only three weeks to go until the ban on energy companies forcing vulnerable families to accept prepayment meters comes to an end, campaigners are asking people who have been had a meter fitted against their will to come forward.
Welfare rights website Benefits and Work says it wants to hear from families who have been affected by what it calls 'the growing scandal' of energy companies fitting the meters - which force households to pay for their gas and electricity before they use it - amid a reported surge in such so-called 'forcibly fitted' meters.
Last month, energy regulator Ofgem regulator ordered energy suppliers to halt the practice of forcing customers to have prepayment meters fitted against their will if they have fallen into debt, but the pause is due to end on March 31. Its boss Jonathan Brearley said that energy firms should start removing prepayment meters and compensating families whose homes were wrongly fitted with one, after details emerged in a Times report of debt agents for British Gas breaking into vulnerable people's homes to force fit meters.
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According to a report in the Guardian, Ofgem has told energy suppliers they should act now, rather than wait for the new guidance to be published. And Benefits and Work is calling on people who have been forced to have a prepay - or Pay As You Go (PAYG) meter - fitted to contact the website.
"Energy suppliers have been told by Ofgem to pay compensation to customers wrongly forced to have prepayment meters. Other customers may have the right to have their prepayment meters removed, even if they don’t get compensation. We would like to hear from Benefits and Work readers if you have been affected by this growing scandal," the website says.
"According to Ofgem rules, suppliers can’t legally force-fit a prepayment meter under warrant for people in very vulnerable situations if they don’t want one. Nor can they legally use warrants on people who would find the experience very traumatic.
"Yet it has become increasingly clear that suppliers have been forcibly fitting meters unlawfully with virtually no scrutiny by courts, who simply took the suppliers word that all the necessary checks had been made."
Suppliers have argued that installing prepayment meters allows them to recover debts and stops consumers amassing larger amounts of debt. Energy UK, the trade association for suppliers, has regularly highlighted that suppliers can be left with debts from customers who do not pay their bills. These mounting debts would have to be recovered from everyone else's bills if there was no option of moving people onto prepayment meters for debt recovery.
"Suppliers have already paused prepayment installations by warrant in order to carry out reviews of their own practices and they will look to put things right if they find cases where prepayment meters have been installed inappropriately," Energy UK told the BBC. "The industry has already been talking to Ofgem and the Government about how best we can support the most vulnerable customers going forward, including the role a social tariff could potentially play, which needs to be part of the discussion around the use of prepayment meters."
Citizens Advice Newcastle has joined the call for new protections to stop people being fully cut off from energy if they could not afford to top up and said there must be a total ban on energy companies forcing those already at breaking point onto prepayment meters. The charity has previously warned of its fears that people could die in their cold homes amid figures from the CAB that 3.2 million people in the UK had been left without energy at some point last year after struggling to top up their meter in the cost of living crisis. An estimated 600,000 people were forced to make the switch away from credit meters after racking up debt with their energy supplier in 2022.
There are more than four million UK households on prepayment meters, which supply energy only when customers top up their meter with credit. MoneySavingExpert.com founder Martin Lewis has previously said moving customers onto prepay meters meant many would essentially self-disconnect from gas and electricity, adding that energy firms shouldn't be let off the hook if they blame third-party contractors for any failings.
Benefits and Work said: "People who count as vulnerable include those who have a physical or mental health condition which makes it hard to use a prepayment meter. This could include problems with reaching the meter, reading the meter, adding credit or getting to a shop where they can buy credit.
"People who have an illness that affects their breathing or which is made worse by being cold will also be classed as vulnerable, as will people who rely on medical equipment that needs electricity such as a stairlift or dialysis machine.
"If you agreed to a prepayment meter being installed you may have done so under duress, with threats to disconnect you. Under these circumstances, if you are a vulnerable person, you can still ask for the meter to be replaced and may be entitled to compensation."
When can a prepayment meter be fitted against your will?
As things stand, if you've fallen behind on paying your energy bills, your supplier can force you onto a prepayment meter (where you have to pay in advance) to recover the debt that's built up. While it doesn't need your permission to do this, the supplier can only put you on prepay where it is safe and practical. Currently, there is a six-week ban on forced switching in place until March 31.
What is the difference between a prepayment and a standard meter?
Prepayment meters need to be topped up before the energy can be used, either via your smartphone or online of you have a smart prepayment meter or by topping up a key or card at a local shop if you have a traditional prepay meter.
How will it help me budget?
You can top up in smaller amounts so it can be more affordable, but it's a more expensive way to pay for your energy, with prepayment customers paying on average £70 per year more than families who pay for their energy on a standard credit meter.
Am I still covered by the energy price guarantee?
The Government’s Energy Price Guarantee (EPG) – which replaced the Ofgem price cap – is about two per cent higher for prepayment customers than for those who pay by direct debit.
How many people already have prepayment meters?
Around 4.5 million households currently use energy prepayment meters, and many of them are on low incomes.
I am struggling to pay my energy bills. What should I do?
If you're falling behind, the best thing to do is contact your supplier as soon as possible. Under rules from Ofgem, your supplier has to help you – usually by negotiating a payment plan that you can afford.
There are a range of other options suppliers could offer, decided on a case-by-case basis, but engaging with your supplier means you're less likely to be forced onto prepayment, as this should be a last resort.
Can I refuse to allow a prepayment meter to be fitted?
No. You don't have a right to refuse a prepay meter.
If you've fallen behind on paying your energy bills, your supplier can force you onto prepay to recover the debt. It doesn't need your permission to do this, and you don't have an automatic right to refuse, but your supplier can only put you on prepay if it's 'safe and reasonably practicable' and the same rules apply whether your supplier is installing a new prepay meter in your home or switching your existing smart meter into prepay mode.
Can my supplier fit a prepay meter even if it would cause me issues?
When deciding whether it's safe and practical for you to have a prepay meter, your supplier must consider:
- Whether you're able to understand and operate the prepay meter, including topping up;
- How far you live from a shop that lets you top up with cash;
- Whether you need a continuous supply for health reasons, such as having medical equipment that needs electricity;
- The location of your meter
What is the process to be moved to a prepay meter?
Your supplier must follow the correct process to put you on prepay, including:
- Having a valid reason for the switch. This can include recovering a debt you owe the supplier;
- Communicating clearly. Your supplier should tell you it plans to put you on prepay, give its reasons and outline any other options you may have;
- Providing at least seven working days' notice.
- Taking into account whether you're vulnerable. If so, the switch shouldn't go ahead;
- Getting a court warrant (in some cases). This is only relevant where you have non-smart meters (so the supplier needs to physically install new meters) and you've refused to communicate with your supplier about a repayment plan.
Is there anything else I can do?
The Priority Services Register (PSR) is a free support service for people in vulnerable situations. You can sign up for it through your energy supplier. Joining the PSR doesn't necessarily mean your supplier can't put you on prepay – but it is an extra layer of protection, because your supplier must consider whether your circumstances make it unsafe or impractical for you to be on prepay.
You can join the PSR if any of the following apply to you:
- You've reached your state pension age.
- You are disabled or have a long-term medical condition.
- You are recovering from an injury.
- You have a hearing or sight condition.
- You have a mental health condition.
- You are pregnant or have children under five.
- You have extra communication needs (such as if you don't speak or read English well).
You might still be able to register for other reasons if your situation isn't listed. For example, if you need short-term support after a stay in hospital.
I think my switch to a prepay meter was unfair. What can I do?
If your supplier hasn't followed the correct process, or has put you on prepay when it shouldn't have, you should raise a formal complaint with your energy supplier directly.
If you've already contacted the company and it's been more than eight weeks since you lodged your formal complaint (or you've received a deadlock letter), you can then take it to the free Energy Ombudsman, an independent body that handles disputes between consumers and energy firms.
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