MILLIONS of hard-up energy customers will be affected by a major change from today.
It comes a year after a Times investigation which revealed that British Gas sent Arvato debt collection agents to “break into” people’s homes and “force-fit” prepayment meters (PPMs).
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Suppliers can fit these meters as a last resort to collect debt from customers who are behind on their bills.
But a new code of practice governing the installation of prepayment meters, which all energy companies signed up to last April, was put in place after The Times’ investigation.
Even though all firms signed up, they are still barred from forcibly fitting PPMs until Ofgem signs off that they are compliant with the legal changes.
EDF, Octopus and Scottish Power have today been permitted to return to forcibly fitting prepayment meters (PPMs) after they were temporarily banned following a scandal around the practice.
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Ofgem said the three firms had met its set of conditions, which include conducting internal audits to identify PPMs wrongfully installed before the February 2023.
Once suppliers meet the conditions and restart “involuntary” PPM installations, they must also provide regular monitoring data to Ofgem to identify any concerning practices.
EDF, Octopus and Scottish Power will still have to make at least 10 attempts to contact a customer before a prepayment meter is installed and conduct a site welfare visit before proceeding.
However, these firms are not allowed to forcibly fit a PPM if the household is considered to include “highest risk” customers.
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This includes those who require a continuous energy supply for health reasons, have an older occupant aged 75 and over without support, or those with children under two years old.
Ofgem said it had reminded energy chief executives of their responsibility to treat customers fairly when installing “involuntary” PPMs, and that they must follow the new rules or face tough action and fines.
Tim Jarvis, director general for markets at Ofgem, 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 that 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.”
Customers can check energy suppliers that can install prepayment meters without household permission on the Ofgem website.
Responding to Ofgem’s announcement, Dame Clare Moriarty, chief executive at Citizens Advice, 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.
“Ofgem must proactively monitor suppliers and act swiftly if there are any suspicions rules are not being followed.”
What can you do if you’re struggling to pay for your energy?
You can take some measures if you’re struggling to pay for your energy.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in installments over a set period of time.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Beyond this, several suppliers offer customers grants if they’re struggling to pay energy bills.
A grant is a sum of money you don’t have to pay back, so it’s essentially free cash.
British Gas, Scottish Power, Ovo Energy, E.On, E.On Next, EDF, Octopus Energy and Shell Energy offer grants.
Plus, thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Not everyone is eligible for the Priority Services Register. Your energy firm must deem you to be vulnerable.
This could apply to you if you:
- Have reached state pension age
- You are disabled or have a long-term medical condition
- You are recovering from an injury
- Have a hearing or sight condition
- Have a mental health condition
- You are pregnant or have young children
- You need to use medical equipment that requires a power supply
There could be other situations where you’re eligible too, like if you need short-term support after a hospital stay.
For full details on eligibility, visit Ofgem’s website.
Get in touch with your energy firm to see if you can apply.
What other energy bill help can I get this winter?
Thousands of households are due up to £25 in free cash after cold weather payments were triggered in hundreds of postcodes.
The Department for Work and Pensions (DWP) hands out the free cash to help support hard-up Brits during cold spells.
And eligible households get the cash paid directly into their bank accounts within 14 days.
The cold weather payments are made in locations where residents experience continuous below-zero weather.
Households can get £25 during each seven-day period of low temperatures from now until March 31.
Cold weather payments were triggered in almost 300 postcodes in November – meaning that thousands of households are owed cash.
Plus, millions are due up to £600 in winter fuel payments.
You should have received yours by January 26, 2024 at the latest.
If you haven’t got your payment by then, you need to call the office that pays your benefits.
Those details can be found in the letters they have sent you.
And if you’re found to be ineligible for the winter fuel payment but want to challenge that decision, there’s a government form for that, too.
Millions on benefits will also receive the final £299 cost of living payment in February.
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We’ve previously explained who’s eligible and whether you’ll need to act to get it.
Additional support is also offered by councils in the UK through the Household Support Fund.
