Energy giants stop installing prepayment meters by force after Ofgem slams ‘unacceptable’ practices
- Vulnerable people have been forcibly moved to more expensive energy contracts
- Regulator Ofgem had to step in as customers risked having no heating
- Eon, EDF, Ovo, Scottish Power and British Gas have now suspended the practice
Big energy companies stopped forcibly installing prepayment meters after regulator Ofgem intervened.
Energy providers have been criticized for replacing standard energy meters with prepaid versions during the winter and a cost of living crisis. Smart meters can be switched remotely, but non-smart meters are physically removed and replaced.
Energy companies do this if a customer hasn’t paid their bills, but not only is prepayment for electricity and gas more expensive, if those meters aren’t topped up, customers are left without power.
Last weekend, The Times reported that vulnerable British Gas customers had had their homes broken into by contractors working for the energy company.
In response, Ofgem said the practice was ‘unacceptable’ and British Gas has now said it will stop forcibly installing the meters over the winter.
Energy bills are higher with prepayment meters because they cost energy companies more to operate
A spokesperson for Ofgem said: “It is unacceptable for a supplier to impose forced installations on vulnerable customers who are struggling to pay their bills before all other options have been exhausted and without carrying out checks. thorough to ensure it is safe and practical to do so.”
Ofgem’s crackdown has led major UK energy companies to end the practice.
Besides British Gas, the largest UK consumer energy companies are Eon, EDF, Ovo and Scottish Power. Eon, EDF and Scottish Power have now all agreed not to force-install prepayment meters until the end of winter.
In practice, this means that energy companies have agreed to suspend legal proceedings to obtain the necessary warrants to enter properties to install prepaid meters. Ovo stopped doing this in November, includes This Is Money.
Some consumers with prepaid meters have also been charged £150 for legal costs related to their home being burglarized by an energy company.
Consumer champion Helen Dewdney, who runs The Complaining Cow website, said: ‘Ofgem must ensure that these charges and any associated charges are immediately refunded to these customers’ accounts and are remitted. on credit billing, if necessary.
Concerns: Energy companies can forcibly install a prepayment meter if a customer hasn’t paid their bills – but Ofgem said this risked leaving vulnerable people without electricity
What energy companies are saying
Chris O’Shea, managing director of British Gas owner Centrica, said: ‘Having recently reviewed our internal processes to support our prepayment customers as well as the creation of a new £10million fund to support customers prepayment who need the most help, I am extremely disappointed that this has happened.
“As a result, on Wednesday morning (February 1), we made a further decision to suspend all of our prepayment mandate activity until at least the end of winter.”
A spokesperson for Eon said: “We have suspended the installation of prepayment meters under mandate as well as the remote switching of smart meters to a pay-as-you-go function, except at the request of the customer. It’s until the end of winter.
An EDF spokesperson said the company had “suspended the forced installation of prepayment meters” while it carried out a review of its processes.
A ScottishPower spokesperson said: “Affordability is a key concern for customers and our processes are tailored to take into account customer vulnerabilities and circumstances.
“We would not switch a customer to prepayment without notice and installing a prepayment meter is always a last resort, only after exhausting all other options to talk and work with customers on debt repayment.
“We deplore the behaviors reported and have suspended all mandated facilities while a full investigation is underway.”
