Ofgem has today banned the forced installment of prepayment energy meters in the homes of over-85s.
It comes after firms including British Gas sent debt collectors to break into the properties of people struggling to pay their bills and forcibly install the devices.
All suppliers in England, Scotland and Wales have signed up to a code of practice setting out clear procedures to protect vulnerable customers. Workers must now also wear body cameras, the energy regulator announced.
The new rules mean tougher oversight of PPMs which are enforced under warrant installations or remotely switched without consent.
The regulator’s chief executive Jonathan Brearley said: ‘Ofgem’s new voluntary code of practice is a minimum standard that clearly sets out steps all suppliers must take before moving to a PPM.
Ofgem has banned the forced installment of prepayment energy meters in the homes of over-85s and will make the members of staff wear body cameras. Prepayment meters (PPMs) have been in the spotlight after some energy suppliers were caught breaking into the homes of people struggling to pay their bills and forcibly installed them (file photo).
Energy Secretary Grant Shapps has welcomed Ofgem’s new code of practice banning forcibly installing prepayment meters in the homes of people over 85
‘If and when involuntary PPMs are used, it must be as a last resort, and customers in vulnerable situations will be given the extra care and consideration they deserve, over and above the rules already in place, by suppliers – something that has clearly not always been happening.
‘This new code of practice means for some people PPMs should never be installed, and for high-risk groups their energy needs must be protected with a higher level of consideration.’
Under the rules suppliers will now have to make at least ten attempts to contact a customer – and conduct a ‘site welfare visit’ before a PPM is installed, The Guardian reported.
An investigation by The Times earlier this year revealed how vulnerable customers – including disabled and mentally ill people – were being forced by British Gas on to the pay-as-you-go meters or instead have their gas switched off.
Suppliers will reportedly make representatives fitting them wear cameras or audio equipment, and they will not be allowed to fit meters for customers over 85 or anyone with a terminal illness.
Those forced on to a prepay meter – either by warrant or remotely – will be given £30 of credit initially to reduce the risk of them losing supply.
Suppliers have also been told to identify where meters were wrongfully installed and to return those customers to their previous tariff and offer compensation.
Forced installations will also be considered a last resort, the code is expected to set out. The Guardian reported that Mr Brearley will expect suppliers to ‘treat their most vulnerable customers as they would want their own loved ones to be treated’.
Firms were temporarily banned from installing prepayment energy meters under warrant.
In the aftermath of The Times investigation, Energy Secretary Grant Shapps said he was ‘horrified’ by the reports that British Gas sent debt collectors to ‘break into homes’ and force-fit pay-as-you-go meters on ‘vulnerable’ customers.
Mr Shapps announced that the Government would hold meetings with the firm’s parent company Centrica to investigate what he called a ‘systemic failure’.
All suppliers in England, Scotland and Wales have signed up to a code of practice setting out clear procedures which must be followed to protect vulnerable customers. The new rules mean tougher oversight of PPMs which are enforced under warrant installations or remotely switched without consent (file photo)
Energy companies can obtain court warrants which give them legal rights to enter people’s homes and fit prepayment meters if customers have not paid their bills. The customers must then top up to continue receiving gas supplies, and if they fail to do so they risk their heating being cut off.
An undercover reporter for the newspaper worked for debt collecting contractor Arvato Financial Solutions and accompanied agents who used court warrants to gain entry into customers’ homes to force-fit these meters.
Once a prepayment meter is fitted, people must top up to get the gas to turn on. Regular repayments are then taken from the bank account, and the supply is cut off if there is not enough credit to cover the cost of the gas.
