Ofgem Grants Permission After Temporary Ban
As of today, EDF, Octopus, and Scottish Power are authorized to resume the installation of prepayment meters, according to the latest decision from the energy regulator Ofgem. This move follows a temporary ban imposed by Ofgem after a scandal surfaced in the winter of 2022/23, revealing that certain energy companies were coercing customers into adopting prepayment meters.
Voluntary Code and Safeguards Introduced
In response to the controversy, Ofgem initially implemented a temporary ban on the practice and later introduced a voluntary code for energy firms in April 2023. The code outlined that companies should explore all possible alternatives before forcibly fitting a prepayment meter. Furthermore, in November 2023, Ofgem’s code specifically prohibited the forced installation of prepayment meters in homes occupied by individuals over 75, those with terminal illnesses or specific disabilities, and families with children under two years old. Any violation of these rules would require the energy firms to replace the prepayment meter with a standard one within 24 hours and provide compensation.
Conditions for Prepayment Meter Installation
While EDF, Octopus, and Scottish Power have gained approval to proceed with prepayment meter installations, Ofgem emphasizes that fitting such meters without customer consent should only be a last resort. Energy firms are obligated to make at least 10 attempts to contact customers before considering prepayment meter installation. Additionally, a site welfare visit must be conducted before fitting any prepayment meter.
Tim Jarvis, Ofgem’s Director General for Markets, emphasized consumer protection, stating that suppliers must explore all options before resorting to forced prepayment meter installation. Jarvis encouraged consumers facing bill payment challenges to engage with their suppliers promptly to discuss payment options.
Ongoing Oversight and Consumer Advocacy
Ofgem remains vigilant about enforcing clear rules regarding prepayment meter installation and has pledged to take action against suppliers acting irresponsibly. With over three million households already equipped with prepayment meters, consumer advocacy groups, including Citizens Advice, emphasize the importance of supplier accountability to prevent wrongful meter installations.
As the temporary ban concludes, consumers seek assurances from energy suppliers that they won’t be compelled onto prepayment meters when evidence suggests it’s unwarranted. The prepayment meter scandal exposed widespread deviations from established rules in the energy sector’s debt collection practices.
Understanding the Prepayment Meter Scandal
The prepayment meter scandal unfolded as energy companies compelled customers to adopt these meters, requiring advance payment for energy usage. This practice mainly targeted households struggling with overdue energy bills, and in many cases, smart meters were remotely switched to prepayment without on-site visits from energy firm staff.
Source：dailymail.co.uk
