London Daily

Focus on the big picture.
Thursday, Jul 09, 2026

Ofgem's prepayment rules are too little too late

Ofgem's prepayment rules are too little too late

Suppliers argue that if they cannot recoup customer debts other bill payers will have to fill the gap. Ofgem has proposed a "social tariff" that would charge lower rates to some customers, but that too would need paying for.
The forced installation of prepayment meters (PPMs) is a response to a problem that used to be an aberration.

Because no one can be left without supply, those who flat refused to pay their bills, or stubbornly declined to engage with suppliers about mounting debts, could find a PPM forced on them.

Once installed it was up to them to top it up or face self-disconnection.

When a year's energy costs the typical household less than £1,000 it was an issue that largely affected the poor or otherwise marginalised.

Energy suppliers need to get paid somehow, so the murky practice of courts granting corporations access to private homes was largely conducted in the shadows.

But the energy crisis has made fuel poverty mainstream and it is now the use of PPMs that look abhorrent, not the people whose locks are being forced to install them.

With millions of families stretched by rising bills, and debts to suppliers soaring, hundreds of thousands of customers have come under pressure.

By the middle of last year, almost one million electricity customers were in arrears with no plan to repay it, and about 860,000 gas customers - both figures the highest on record.

The average level of debt has been rising too, to more than £1,056 for electricity arrears and £797 for gas.

The energy industry says it has worked hard to help customers through the price shocks of the last 18 months but it still forcibly installed 94,000 PPMs last year, which looks more routine than a "last resort".

Ofgem's new Code of Conduct is a belated response to an issue that was unfolding under its nose, but took journalism to force it to act.

The requirement for installers to wear body cameras is a direct consequence of the footage gathered in a Times investigation that brought the aggressive tactics of installers to public attention.

Who is now exempt from PPMs?

Over-85s, the terminally ill or those reliant on powered medical devices will now be exempt from installation, but it's unclear how many of those 94,000 installations would have been avoided had the new code been in place.

For many other potentially vulnerable customers, including the over-75s, young families, and those with dementia, the risk of forced installation remains, though with companies required to carry out greater due diligence than previously.

Whether they are able to do it is an open question.

Companies have been banned from forcing PPMs on vulnerable customers since 2018 but that has not stopped it from happening.

Sky News has heard evidence from whistleblowers that companies are struggling to cope with the volume of customers in arrears.

Companies with millions of customers are inevitably bureaucratic and impersonal, and British Gas has already demonstrated that its network of subcontractors was not fit to make nuanced judgments about vulnerability.

Energy Secretary Grant Shapps was quick to condemn the energy industry over PPMs and welcomes the Ofgem code of conduct, but there is no sign the government will instruct the courts to stop issuing warrants to energy companies or act to change the law to remove suppliers' legal right of entry to homes.

At the heart of this issue is who pays when customers cannot or will not?

Suppliers argue that if they cannot recoup customer debts other bill payers will have to fill the gap. Ofgem has proposed a "social tariff" that would charge lower rates to some customers, but that too would need paying for.

Many of these questions will feel less urgent when and if energy prices fall, but not to the people whose doors are still being forced by the gas man.
Newsletter

Related Articles

0:00
0:00
Close
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
Jet2 Reports Strong Summer Travel Demand as Bookings Rise Seven Percent
Prince Harry Loses High Court Privacy Case Against Daily Mail Publisher
British Universities Warn Against Potential European Union Tuition Fee Changes
Heal Fertility Clinic Investigated After Embryo Biopsy Sample Mix-Up
Resolution Foundation Warns Regional Income Divide Has Barely Improved Since 1997
British Markets Remain Cautious as Middle East Tensions Rise and Government Transition Nears
Andy Burnham Poised to Become United Kingdom Prime Minister in Expected Political Transition
Nigel Farage Resigns as Member of Parliament Ahead of By-Election Amid Funding Investigation
Trump Declares Iran Ceasefire Over After Renewed Attacks on United States Bases
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
UK Parliament Pushes for Greater Domestic Control Over Critical Technologies
UK Parliament Warns Trade Fair and Exhibition Industry Is Losing Global Competitiveness
Police Launch Murder Investigation After Mother and Two Children Found Dead Near Bedford
British Chambers of Commerce Survey Shows Business Confidence Falls to Post-Pandemic Low
UK Parliament Report Warns Britain Risks Falling Behind in Artificial Intelligence Sovereignty
Office for Budget Responsibility Warns United Kingdom Faces Long-Term Fiscal Pressures
Nigel Farage Resigns as Member of Parliament Amid Financial Scrutiny and Triggers By-Election
Deep Purple Has Released Its Best Album in Decades
UK MPs Criticise Student Loan System as Potentially Mis-Sold to Millions of Borrowers
Policy Groups Propose Bank of England-Backed Solar Loan Scheme for Millions of Homes
UK Health Agency Issues Amber Heat Alerts Across Six Regions as Temperatures Rise
Royal Air Force F-35 Jets Conduct First High North Air Policing Missions From Aircraft Carrier
Major UK Companies Join Government Cybersecurity Pledge Amid Rising Digital Threats
×