London Daily

Focus on the big picture.
Sunday, Oct 11, 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
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
×