Yahoo Finance Three energy firms allowed force-fit prepayment meters again
EDF, Octopus and Scottish Power have been granted approval to resume force-fitting prepayment meters in people's homes nearly a year after the practice was suspended.
Energy regulator Ofgem said it was allowing the three companies to restart the controversial practice as its requirements had been met. These include conducting internal audits to identify prepayment meters wrongfully installed before the February 2023 moratorium and offering compensation and a return to a non-prepayment payment method to any affected customers.
For years, energy companies were able to force-fit meters into homes when bills went unpaid. It was outlawed last year following an investigation revealed how debt collectors had forced their way into homes of vulnerable customers to install prepayment meters (PPM).
Charges for gas and electricity are typically higher for these customers than those who pay by direct debit.
EDF, Octopus and Scottish Power will still have to make at least 10 attempts to contact a customer before a prepayment meter is installed and carry out a site welfare visit before proceeding.
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They are not allowed to forcibly fit a PPM if the household is considered to include “highest risk” customers, including those which require a continuous energy supply for health reasons, have an older occupant aged 75 and over without support, or those with children under two years old.
Data from consumer group Which? shows that almost one in 10 UK households failed to pay a major bill in the month to 10 November — the highest level recorded since April 2020.
The research suggested that as many as 2.8 million households missed a significant bill over that period.
Ofgem’s director general for markets Tim Jarvis said: “Protecting consumers is our number one priority.
“We’ve made clear that suppliers must exhaust all other options before considering forced installation of a prepayment meter, and 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.
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“While nobody wants to see the practices uncovered last year repeated, we also know that allowing households to build up unsustainable amounts of debt isn’t the right thing to do either."
Once suppliers meet the conditions and restart “involuntary” PPM installations, they must also provide regular monitoring data to Ofgem to identify any concerning practices.
Customers and consumer groups will be able to check energy suppliers that can install prepayment meters without a household’s permission on the Ofgem website.
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