ANOTHER major energy supplier has made a major change to prepayment meters following British Gas.
EDF Energy has now suspended forcing the installation of prepayment meters in hard-up households.
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It comes after The Times reported that British Gas was caught sending debt collectors to “break into” people’s homes and “force-fit” prepayment meters.
British Gas was caught doing this even when customers were known to have “extreme vulnerabilities”.
British Gas announced last night that it will stop applying for court warrants to enter customers’ homes and fit prepayment meters following reports they had been forced on “vulnerable” customers.
EDF Energy is also now confirmed to be following suit.
Warrants give energy firms the legal right to enter homes and install the meters, but these should only be used in exceptional circumstances.
Prepayment meter customers end up paying around £60 a year for their energy compared to those who pay their bills by direct debit.
This is because the unit rates for gas and electricity charged to those with these meters are higher than those charged to those with standard credit meters.
Households on prepayment meters are also at risk of facing self-disconnection.
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This happens if they don’t have enough cash to top up and can see hard-up households left without electricity and gas for prolonged periods.
A spokesman for EDF said: “In 2022, we applied for 13,766 warrants in relation to domestic customer debt and in around half of these cases we took the decision not to proceed once the customer had engaged and we understood their circumstances.
“We regularly review and update these processes and so we are confident they are fit for purpose.
“Nonetheless we are currently reviewing them again to reconfirm they are robust and see if we can make any improvements.
“We have suspended forced installation of prepayment meters while we conduct this latest review.”
In response to The Time’s damning findings, the energy regulator Ofgem put out a stern warning to the industry that it wouldn’t tolerate such “unacceptable behaviour.”
An Ofgem spokesperson said: “We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it.”
Ovo Energy and Utilita halted forcing customers onto costly prepayment meters over the busy Christmas period.
The pause of installations – which can be done without a customer’s permission under a court warrant – was in place until December 31 for Ovo Energy customers and January 3, for those with Utilita.
Shell Energy also paused putting customers onto prepayment meters until the end of last month.
It’s unclear as to whether these firms have extended their plans to pause these installations.
What can you do if you’re struggling to pay for your energy?
There are some measures you can take 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 you paying off what you owe in instalments 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, a number of 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 all offer the grants.
Plus, you might be able to get help from charities that can help you pay off your debt.
StepChange is one such charity, and you can call them for free advice on 0800 138 1111.
