London Daily

Focus on the big picture.
Saturday, Aug 01, 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
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×