London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

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
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×