THOUSANDS of customers on prepayment meters could be in line for compensation.
The boss of the energy regulator Ofgem has said that energy firms should offer payouts to households where meters were wrongly fitted.
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Chief executive Jonathan Brearley said energy companies must immediately review how and why they install prepayment meters.
It follows a ban on installing them after an investigation found that they were being wrongly installed for vulnerable customers.
“If you know people have had a prepayment meter inappropriately installed, fix it now,” he told BBC Radio 4’s Today programme today.
“That means going back to that customer, asking them whether they want to continue on that meter, if they don’t change that meter and offer compensation where appropriate.”
The energy boss said Ofgem has told companies it will review what they are doing and if they are following rules.
Ofgem will investigate if British Gas has properly supported customers in debt before moving them onto a prepayment meter – or disconnecting their supply.
It will also consider whether British Gas assessed if its safe for that customer to have one installed.
A market compliance review meeting it also being held today.
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This will look at various things including:
- How boards and senior leaders are providing direction and decision making with respect to remote switching to prepayment meters
- What policies suppliers have for remotely switching a smart credit meter to a prepayment meter and fitting a prepayment meter under warrant
- How firms identify vulnerable customers and how they support them
A Times investigation found that British Gas was forcibly installing prepayment meters to customers, many of them vulnerable.
The energy provider was found to be forcing itself into homes, when customers weren’t there themselves.
The undercover reporter worked for debt collection contractor Arvato Financial Solutions and accompanied agents on the job.
Some of the “vulnerable” customers the Times reporter came across while working at Arvato Financial Solutions included a single dad with three young children.
After establishing the property was unoccupied, the reporter observed the agents work with a locksmith to force their way in and install a prepayment meter.
Agents also fitted a prepayment meter by force at the home of a young mum with a newborn baby, the newspaper claimed.
The scandal sparked an urgent inquiry by regulator Ofgem and British Gas and other suppliers have banned installing the devices.
The regulator has said the temporary ban on energy firms forcibly putting customers onto prepayment meters will end in March.
It will mean that any customers who find themselves in debt to their energy provider could be automatically moved onto a prepayment meter from March 31.
Sun Money called for a ban on fitting prepayment meters in households in August last year.
Estimates suggest that over four million households already face paying around £60 more for energy just because they have one installed.
It’s not clear yet how much compensation people could get.
What energy bill help is available?
A £900 payment will be going to millions on means-tested benefits and Universal Credit in 2023.
To be eligible for the payment, households will need to be claiming at least one of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
Elderly Brits will receive another one-off £300 pensioner cost of living payment.
Those with certain disabilities will also qualify for a further £150 cost of living payment.
Energy suppliers also offer plenty of energy grants and schemes to help you out if you’re struggling. Here’s a list of schemes open right now:
- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment meter.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
