Three energy firms can once again force-fit prepayment meters after regulator Ofgem gave EDF, Octopus and Scottish Power permission.
A scandal erupted in the winter of 2022/23 when it emerged some energy firms had been forcing customers to have prepayment meters.
In response, energy regulator Ofgem temporarily banned the practice. In April 2023 it brought in a voluntary code for energy firms which said they should try everything possible before forcibly fitting a pre-payment meter.
In November 2023 Ofgem’s code said prepayment meters should never be forcibly installed in properties of the over-75s, those with terminal illnesses or certain disabilities and families with children under two years old.
Hiking up bills: Prepayment meters are a more costly way of paying for gas and electricity, making the involuntary fitting of them a very sensitive subject with energy prices so high
If energy firms do fit a prepayment meter in any of these homes, Ofgem wants them to put a standard meter back in the property within 24 hours and pay compensation.
But energy firms are free to fit prepayment meters to any other homes, provided they get permission from Ofgem first – which EDF, Octopus and Scottish Power have now done.
But Ofgem is clear that fitting a prepayment meter without a customer’s consent should only be a last resort.
Energy firms have to make at least 10 attempts to contact a customer before a pre-payment meter is installed.
They must also carry out a site welfare visit before fitting any such meter.
Ofgem director general for markets Tim Jarvis said: ‘Protecting consumers is our number one priority.
‘We’ve made clear that suppliers must exhaust all other options before considering forced installation of a prepayment meter, and consumers can help themselves by reaching out to their supplier as soon as possible if they think they won’t be able to pay their bill, so payment options can be discussed.
‘Our rules on when, and how, a prepayment meter can be installed are clear and we won’t hesitate to take action if suppliers act irresponsibly.’
There are more than three million households with pre-payment meters.
Citizens Advice chief executive Clare Moriarty said: ‘Last winter, we all saw that the rotten core of debt collection practice in the energy sector was not just a case of one bad apple – the rules were simply not being followed.
‘As the temporary ban on force-fitting comes to an end, people need reassurance from suppliers that they won’t be wrongly forced on to a meter when there’s clear evidence they shouldn’t be.’
What is the prepayment meter scandal?
Many energy firms forced customers to get these meters, which require users to pay in advance for any energy used.
Energy companies did this because households were falling behind with energy bills.
A smart meter can be swapped to pre-payment remotely in many cases, without a visit from energy firm staff.
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