OFGEM has issued a major update for customers struggling with rocketing energy bills.

The regulator has revealed that its rule which bans energy suppliers from forcefully installing prepayment meters will end in March.

The ban on moving customers onto prepayment meters is only temporary

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The ban on moving customers onto prepayment meters is only temporaryCredit: Getty

It wasn’t originally clear how long the policy would last when it was first announced on February 3.

But the move means that suppliers including British Gas, EDF Energy and E.ON Next will be able to move indebted customers onto costly prepayment meters from March 31.

It comes after an investigation by The Times found that debt collectors working on behalf of British Gas forcefully installed prepayment meters in the homes of vulnerable customers.

The undercover reporter worked for debt collection contractor Arvato Financial Solutions and accompanied agents on the job.

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Some of the “vulnerable” customers the Times reporter came across while working at Arvato Financial Solutions included a single father 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 mother with an infant baby, the newspaper claimed.

The scandal sparked an urgent inquiry by regulator Ofgem and British Gas and other suppliers have banned installing the devices.

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At the time British Gas owner Centrica said it was “extremely disappointed” by the pre-payment meter allegations over the tactics used by the debt collectors it employed.

This week, Ofgem sent a letter to suppliers on Wednesday and its chief executive Jonathan Brearley said: “As discussed during our conversation on February 9 2023, you have agreed to our request to immediately halt forced installations and remote transfers to pre-payment meters until the end of March 2023.”

“For the avoidance of doubt, this includes ceasing installation by warrant, ceasing the remote mode switch of smart meters to pre-payment without explicit agreement from the customer, and ceasing new applications to court for installation warrants – unless theft is suspected.”

Sun Money called for a ban on fitting prepayment meters in households in August last year.

Estimates suggest that over 4million households already face paying around £60 more for energy just because they have one installed.

In the meantime, Ofgem is consulting with suppliers, consumer groups and charities to consider how the rules and guidance on the use of pre-payment meters by suppliers apply in the current exceptional circumstances as well as whether these rules and guidance should be amended going forward.

The regulator will publish an update on the scope and timelines of its Market Compliance Review on prepayment meter warrant installations and remote mode switching on February 21.

It comes as some suppliers have expressed concerns about the levels of customer debt caused by a halt to warrant prepayment meter installations.

There are concerns that if the debt can’t be recovered from some customers it will lead to increased costs for suppliers.

But British Gas’ owner has announced billions in profits today.

Centrica’s annual profits hit £3.3billion in 2022 – more than triple the £948million it made in 2021.

The energy giant said it made operating profits of £72million at its British Gas retail division, British Gas Energy, but this was down 39% on the year before.

The latest bumper profits come after Shell was slammed for announcing its highest profits in its 115-year history.

The energy giant revealed profits of $40billion (£32bn) – which works out at nearly $110million a day.

What energy bill help is available?

£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:

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  • 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.

This post first appeared on thesun.co.uk

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