Yahoo Finance Ofgem warns Octopus, EDF and Scottish Power to ‘exhaust all options’ before forcing meter installations
Energy providers must “exhaust all other options” before considering the forced installation of a payment meter, the UK’s energy watchdog Ofgem has warned.
In a release today, Ofgem said that EDF, Octopus and Scottish Power can once more install “involuntary” ‘pay as you go’ meters, having met the conditions to allow the practice again.
Before the firms can install the meters again, they must conduct an internal audit on wrongfully-installed ones and offer compensation to customers affected, commission an independent assessment on the company’s suitability to comply with the Ofgem rules and get board sign-off.
The list of those exempt from facing involuntary fittings include those who have been contacted less than ten times about the procedure, households with children under two years old or over 75s living alone and those with a range of health issues.
“Protecting consumers is our number one priority and we’ve made clear that suppliers must exhaust all other options before considering forced installation of a prepayment meter,,” Ofgem said today.
“Consumers can help themselves by reaching out to their supplier as soon as possible if they think they won’t be able to pay their bill, so payment options can be discussed.
“Our rules on when, and how, a prepayment meter can be installed are clear and we won’t hesitate to take action if suppliers act irresponsibly. “
An Octopus Energy spokesperson told City A.M. that the company had “no plans” to restart the fitting of involuntary meters.
A ScottishPower spokesperson said: “While we have met Ofgem’s strict criteria and been authorised to restart involuntary prepayment meter installations, where appropriate, this is always a last resort. Our focus will continue to be on supporting our customers to manage their debt and avoid the need for such action.
“If any customer is struggling to pay, we would urge them to contact us or speak to a debt charity right away, so we can take their situation into account and get them the help they need. Talking to us will also allow us to determine whether a prepayment meter is appropriate for their individual circumstances or not, in line with the regulator’s strict rules and licence conditions which we have met.”
EDF have been contacted for comment.
City A.M. first reported that the watchdog was stepping in to outlaw the forced installations in February last year, following allegations that British Gas owner Centrica had used debt agents to break into vulnerable customers’ homes to fit energy meters.
A code of practise was then introduced in April to ban involuntary installations in the homes of over 85-year-olds living alone as well as those with a medical dependency on heated housing.
Ofgem is proposing lifting the energy price cap by £16 for a household with typical gas and electricity usage between April and March 2025, to cover unpaid debt levels among energy customers which has risen to £2.9bn.
