London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Energy firms asked to suspend prepayment meter installs

Energy firms asked to suspend prepayment meter installs

Energy companies have been asked by the energy regulator Ofgem to suspend the forced installation of prepayment meters.

It comes after The Times found debt agents for British Gas had broken into vulnerable people's homes to fit meters.

Ofgem has asked all suppliers to review the use of court warrants to enter the homes of customers in arrears.

It said firms must get their "house in order".

Jonathan Brearley, the regulator's boss, said he had ordered the review into pre-payment meters to "uncover poor practice" and that he would not hesitate to take the "strongest action in our powers" where needed.

Prepayment meters require customers to pay for their energy in advance, either through accounts or by adding credit to a card.

They are more expensive than paying by direct debit, but are sometimes the only option for people who have struggled to pay and are in debt to a supplier.

The undercover investigation by The Times revealed how agents working for Arvato Financial Solutions on behalf of British Gas had forced their way into the home of a single father-of-three to install a prepayment meter.

One debt agent is reported to have said: "This is the exciting bit. I love this bit."

Chris O'Shea, the boss of Centrica which owns British Gas, told the BBC: "There is nothing that I can say that can express the horror I had when I heard this, when I read this. It is completely unacceptable.

"The contractor that we've employed, Arvanto, has let us down but I am accountable for this."

But Mr Brearley said: "It is astonishing for any supplier not to know about their own contractors' behaviour, especially where they are interacting with the most vulnerable in our society."

British Gas has said it will suspend forcefully installing prepayment meters until at least after the winter. Arvato Financial Solutions has not commented.

A spokesman for British Gas said it had about 1.5 million customers on prepayment meters and last year had executed around 20,000 prepayment installs with a warrant. It is the country's largest supplier with 7.26 million customers.

EDF, Britain's second largest supplier, has also confirmed it is suspending the forced installation of prepayment meters and reviewing its practices.

Ovo Energy suspended its warrant activities in November and Octopus Energy said it was "not installing any at the moment" and rarely had done.

Ofgem said energy suppliers had been asked to examine their relationships with third-party contractors and to look at "incentives that could give rise to poor and unacceptable behaviours".

Mr Brearley warned no energy chief executive could "shirk their legal and moral responsibilities to protect their own customers, especially the most vulnerable".

In the case of British Gas, Mr Brearley: "We are opening a comprehensive investigation into British Gas on this issue and we will not hesitate to take the strongest action needed," he added.

Graham Stuart, the minister for energy and climate, said British Gas should "hold their heads in shame".

He told the BBC he had met all energy suppliers last week to talk about how to improve looking after vulnerable people "because there are clear rules and they have obviously not been followed".

The discovery of how some British Gas customers had been treated was "just appalling", Mr Stuart said.

"I am angry, everyone should be angry. It's completely in the face of all the promises that I've been made by suppliers," he added.


'It felt violating'


Jane, who did not want us to use her surname, came home to her recently-bought house in Poole, Dorset, in 2014 to find that someone had been in her home, installed a prepayment meter and left a letter in the kitchen.

Jane said the "horrid" experience had happened just after she had lost her unborn child at 17 weeks. She said she was mentally "broken".

The now 46-year-old said she had been sent letters addressed to a previous occupant and had posted them marked 'return to sender'. Jane added she was signed up to a direct debit plan with her energy provider, and had not missed a payment.

She called the firm and said it transpired that it had been the previous tenant who had been in arrears. She said a neighbour with a spare key was persuaded to let the installers in.

Jane said her energy provider had apologised on the phone for the mistake, removed the prepayment meter and credited her account with £45.

"It feels violating to have someone come into your house like that. It was so scary," she said. "You could sense someone had been in. The house was freezing cold."


Strict rules apply that prevent energy firms putting an at-risk customer on a prepayment meter, but in certain circumstances customers in arrears can be moved either remotely on a smart meter, or physically after the firm has been given a warrant to do so.

Suppliers are required to have exhausted all other options before installing a prepayment meter, and should not do so for those in the most vulnerable situations.

Dame Clare Moriarty, chief executive of Citizen Advice which has been calling for a ban on forced prepayment installations, welcomed Ofgem's announcement.

"The rotten core of debt collection practice in the energy sector has now been exposed for all to see. But this isn't a case of one bad apple," Ms Moriarty said.


Centrica boss Chris O'Shea: "Every one of our customers deserves to be treated with respect"


Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×