Ofgem, the British energy regulator, announced on Monday that three major suppliers would be permitted to resume the forced installation of pre-pay meters in some households with unpaid
energy bills and accumulating debts.
The scrutiny over forced pre-pay meter installations intensified last year after reports in The Times revealed that debt agents representing Centrica's British Gas had forcefully installed such meters in the homes of vulnerable customers.
In response, Ofgem temporarily prohibited this practice while developing a new code of conduct. Prepayment meters, if left untopped, can result in a disruption of energy supplies.
Ofgem stated that EDF, Octopus, and Iberdrola's Scottish Power, among the UK's largest energy suppliers, have now complied with the code's conditions.
The code mandates these companies to conduct internal audits, reinstate non-prepayment methods, and provide compensation to households where pre-pay meters were wrongfully installed. Regular monitoring data on pre-pay meter installations must be submitted to Ofgem by these suppliers.
Ofgem emphasized that forced installation should be a last resort for energy suppliers, but households should not accumulate unsustainable debts.
Tim Jarvis, Ofgem's director general for markets, highlighted the value that pay-as-you-go meters offer in bill control and budgeting for many households. However, suppliers must also recover debts to prevent these costs from impacting other consumers' bills, he stated in a released statement.
The code outlines restrictions preventing the forced installation of pre-pay meters in homes with vulnerable individuals, such as those over 75 years old or with children under two. Households with residents facing severe health issues or requiring warmth for medical reasons will also receive protection under these guidelines. Photo by Brian Robert Marshall, Wikimedia commons.