London Daily

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

Energy regulator reveals end to forced installation of prepayment meters is temporary

Energy regulator reveals end to forced installation of prepayment meters is temporary

The energy regulator's investigation into the treatment of vulnerable customers could yet recommend a permanent ban on the practice, as debt charities have demanded.
Ofgem has revealed that the end of forced installation of controversial energy prepayment meters only extends until the end of March.

The watchdog said the date, that household energy suppliers had agreed to, also included a temporary halt to remote transfers for customers currently on smart meters.

The government had suggested last week that the practice of forcing indebted customers onto prepayment meters had ended with the agreement of firms.

There was no suggestion that the date was temporary though it coincides with the 31 March deadline for Ofgem to complete its subsequent review of the treatment of vulnerable customers.

The probe was ordered by the government following a newspaper investigation that revealed debt collectors working on behalf of British Gas had forced their way into the homes of vulnerable customers, including people with disabilities.

The Times further claimed that employees of the company used by British Gas were incentivised with bonuses to fit prepayment meters.

They are controversial because gas and electricity typically costs more while they also leave users at the mercy of decisions between heating or eating amid the wider cost of living crisis.

Suppliers were asked to review their processes for dealing with customers in arrears as part of the regulator's "intensive" investigation.

The number of struggling households has risen sharply over the past year as gas and electricity bills have hit record levels, largely as a result of surging wholesale costs exacerbated by Russia's war in Ukraine.

An additional 600,000 homes were on prepayment meters last year.

Confirmation that the forced installation ban was temporary came in a letter to suppliers from Ofgem's chief executive Jonathan Brearley, who was updating executives on the progress of its review.

He wrote: "Further to our letter on Ofgem's expectations regarding the treatment of domestic customers during prepayment meter installations, as discussed during our conversation on 9 February 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."

He said their respective preliminary submissions to the review were currently being examined, pending further consultation.

The review could potentially conclude that the ban is extended - or made permanent as many debt charities have demanded.

But in a nod to industry frustration over soaring levels of arrears, Mr Brearley added: "Some suppliers have expressed concerns on the levels of customer debt caused by a halt to warrant pre-payment meter installation and forced remote switch of smart meters to pre-payment mode.

"If this debt cannot be recovered from some customers, then this increases costs for suppliers.

"We are aware of the difficult balance here as unrecoverable debts from some customers may then be recovered from the bills of paying customers, many of whom are themselves struggling with paying their bills given the wider affordability issue.

"We have an ongoing programme of work to assess costs to suppliers from customer debt. Once we have analysed your responses to our request for information on debt, we will be able to determine what action we need to take and, if an adjustment is required, we will act quickly."
Newsletter

Related Articles

0:00
0:00
Close
UK Prison Officer Sentenced for Inappropriate Conduct with Inmate
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
×