A MAJOR change to energy rules comes into force today which is good news for millions of households.
From today energy suppliers will be banned from forcibly installing prepayment meters into vulnerable people’s homes.
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Energy regulator Ofgem first proposed the changes in June this year and they were agreed in September.
This means that from today, November 8, energy suppliers must only install prepayment meters as an absolute last resort and must not use any force.
The voluntary code of practice means that people who are struggling financially or are in more vulnerable situations will be better protected.
Ofgem has said that if a prepayment meter needs to be installed then it must be done so in a fair and reasonable way.
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As well as that, energy suppliers must also give a £30 credit per meter for all installations and remote switches.
A remote switch is when the energy supplier switches you over to a prepayment method without needing to visit your property.
The £30 credit that is now available means that households with warrant installations and remote switches will get the credit to prevent them from being cut off.
The new rules will put vulnerable customers at less risk of having a prepayment meter installed when they do not need it.
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Those who will be protected include:
- People aged over 75 and have no other support in the house (the initial proposals said people over the age of 85 but this has been dropped by a decade)
- Families with children aged under two
- Households who require a continuous energy supply for health reasons
- Households with residents with severe health issues including terminal illnesses or those with a medical dependency on a warm home
- Those with no one in the households who has the ability to top up the meter due to physical or mental incapacity
Before a meter can be installed energy companies must also adhere to the following rules:
They must:
- Make at least 10 attempts to contact a customer before it is installed
- Carry out a welfare visit beforehand
- Re-assess the case once a customer has repaid debts owed and contact them to offer an assessment about whether a prepayment meter remains suitable
In addition to this, Ofgem is ensuring that audio or body cameras are worn by the lead employee representing an energy company during all installations and home visits.
Neil Kenward, director for strategy at Ofgem said that “protecting the most vulnerable consumers is at the heart of what we do”.
He added: “Prepayment meters are an important payment method that help millions of households to manage their energy bills. But they are not suitable for everyone.
“Ofgem will be monitoring suppliers’ behaviour closely to ensure they are complying with the spirit and letter of these rules. If that is not the case we will not hesitate to take action.”
All energy suppliers signed up to the code of practice last April after the regulator found suppliers were not acting fairly with vulnerable customers.
The code will now become a part of suppliers’ licence conditions and if breached, could result in enforcement action and fines.
What other cost of living help is available?
Millions of households should start receiving a £300 cost of living payment soon.
Over eight million people on benefits qualify for the payment and some people, including those on Universal Credit, have already started receiving the cash.
The full list of benefits that make you eligible is:
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
Also, anyone eligible for a Winter Fuel Payment this year will receive a top up worth between £150-£300 from November.
You qualify for this year’s Winter Fuel Payment if you were born on or before September 25, 1957.
In some cases, you will qualify for both the cost of living payment and the Winter Fuel Payment top-up, say for example if you receive Pension Credit.
On top of the cost of living payments, you might be eligible for help via the Household Support Fund (HSF).
It was launched in October 2021 and has been extended multiple times.
The latest round of funding is worth £842million and has been distributed among councils in England.
They then decide how to allocate their own unique share, which means it can be a bit of a postcode lottery to what you get.
In most cases though, help is offered to those on benefits or a low income.
It’s worth contacting your local council to see what help is available. You can find your local council by using the Government’s locator tool.
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Meanwhile, struggling households on Universal Credit can get a number of freebies during the month of November.
Also, a major change is set for later in the month as the government crackdown on benefit fraud.
