London Daily

Focus on the big picture.
Saturday, Jun 21, 2025

Ofgem tells suppliers to suspend forced installation of prepayment meters

Ofgem tells suppliers to suspend forced installation of prepayment meters

The move comes as an investigation revealed debt collectors working for British Gas forced their way into the homes of vulnerable customers.
The energy regulator Ofgem has asked suppliers to suspend the forced installation of prepayment meters and review their processes for dealing with customers who have fallen into arrears.

Sky News understands the regulator made the request on Thursday after it was revealed that debt collectors working for British Gas had forced their way into the homes of vulnerable customers.

Industry sources said Ofgem had asked all suppliers to cease applications for court warrants that allow them to enter the homes of customers who have not responded to attempts to deal with arrears.

Suppliers are required to pursue all available alternatives over a six-month period before executing warrants and are not permitted to force prepayment on vulnerable customers.

Centrica, British Gas's parent company, said it had applied for about 97,000 warrants last year and acted on around 20,000 of them.

Jonathan Brearley, the CEO of Ofgem, said: "I've warned all domestic energy suppliers to get their house in order on forced installments of prepayment meters.

"I ordered our biggest-ever market review into prepayment meters to uncover poor practice - and I will not hesitate to take the strongest action in our powers where needed.

"No energy CEO can shirk their legal and moral responsibilities to protect their own customers, especially the most vulnerable. These are serious allegations for British Gas to deal with and we are opening a comprehensive investigation into British Gas on this issue and we will not hesitate to take the strongest action needed.

"It is right British Gas has apologised following the very worrying allegations in The Times, but millions of customers expect action, not warm words.

"It is astonishing for any supplier not to know about their own contractors' behaviour, especially where they are interacting with the most vulnerable in our society."

He added: "That's why I've asked all suppliers to review all activities regarding prepayment meter warrants. Suppliers need to reassure us that the processes for customers being moved onto prepayment meters are compliant with all Ofgem rules and, until this is done, we have asked them to pause forced installations.

"Many have already come forward and agreed to do this until their boards are satisfied vulnerable customers are protected. I've also asked them to look at their relationships with any third-party contractors and examine incentives that could give rise to poor and unacceptable behaviours."

The boss of Centrica said "there is no excuse" after a Times investigation showed a company used by British Gas to pursue debts, Arvato Financial Solutions, forcing their way into homes to fit the devices, despite signs children and disabled people were living there.

Chris O'Shea also said that customers do not deserve to be treated in such a way, and that he would not "justify it" - adding that he is launching an independent investigation.

"I am really, really sorry," he added, talking to Sky News' business presenter, Ian King.

"We've clearly got it wrong here and we are going to fix that."

After Centrica announced it was suspending all forced installations, EDF said it had launched a review of its practices and would not be pursuing warrants while it was ongoing.

EDF, the UK's second-largest supplier, said it had applied for almost 14,000 warrants in 2022 but not acted on around half after contacting customers and agreeing other means of controlling arrears. The company is understood to have acted out of caution rather than in response to evidence of bad practice.


In a statement it said: "We regularly review and update these processes and so we are confident they are fit for purpose. Nonetheless we are currently reviewing them again to reconfirm they are robust and see if we can make any improvements. We have suspended forced installation of prepayment meters while we conduct this latest review."

A Scottish Power spokesperson said: "We would not switch a customer to prepayment without advanced notice and installing a prepayment meter is always a last resort, only after we have exhausted all other options to speak to and work with customers on debt repayment.

"We deplore the behaviours reported and have suspended all warrant installations while a thorough investigation takes place."

Shell Energy said it had extended an annual winter moratorium on forced installations.

"Every year we pause installs in December and January, and we have extended this moratorium this winter. It's only ever a last resort if a customer doesn't engage with us for at least six months - we will always find a way to help if they do. And even then, if there is any sign of vulnerability we will not install a pre-payment meter.

OVO Energy told Sky News it had suspended "warrant activity" in November and has now suspended all debt recovery on prepayment meters until March.

While there is great concern about the increase in the imposition of prepayment meters as a consequence of soaring prices, suppliers face financial pressure as a consequence of millions of customers struggling to meet payments.

Around 40% of customers are estimated to be spending more than 10% of their income on energy and nearly a million energy customers are now in arrears with suppliers with no plan to repay debts.
Newsletter

Related Articles

0:00
0:00
Close
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
×