- Three vitality corporations can now match ‘pay as you go’ meters with out buyer consent
- Regulator Ofgem has warned vitality corporations to tread rigorously with meter becoming
Three vitality corporations can as soon as once more force-fit prepayment meters after regulator Ofgem gave EDF, Octopus and Scottish Power permission.
A scandal erupted within the winter of 2022/23 when it emerged some vitality corporations had been forcing clients to have prepayment meters.
In response, vitality regulator Ofgem quickly banned the observe. In April 2023 it introduced in a voluntary code for vitality corporations which stated they need to strive every part doable earlier than forcibly becoming a pre-payment meter.
In November 2023 Ofgem’s code stated prepayment meters ought to by no means be forcibly put in in properties of the over-75s, these with terminal diseases or sure disabilities and households with youngsters below two years outdated.
Hiking up payments: Prepayment meters are a extra expensive approach of paying for fuel and electrical energy, making the involuntary becoming of them a really delicate topic with vitality costs so excessive
If vitality corporations do match a prepayment meter in any of those properties, Ofgem needs them to place a typical meter again within the property inside 24 hours and pay compensation.
But vitality corporations are free to suit prepayment meters to some other properties, offered they get permission from Ofgem first – which EDF, Octopus and Scottish Power have now performed.
But Ofgem is evident that becoming a prepayment meter with no buyer’s consent ought to solely be a final resort.
Energy corporations should make a minimum of 10 makes an attempt to contact a buyer earlier than a pre-payment meter is put in.
They should additionally perform a web site welfare go to earlier than becoming any such meter.
Ofgem director common for markets Tim Jarvis stated: ‘Protecting customers is our primary precedence.
‘We’ve made clear that suppliers should exhaust all different choices earlier than contemplating compelled set up of a prepayment meter, and customers can assist themselves by reaching out to their provider as quickly as doable in the event that they suppose they will not have the ability to pay their invoice, so fee choices may be mentioned.
‘Our guidelines on when, and the way, a prepayment meter may be put in are clear and we can’t hesitate to take motion if suppliers act irresponsibly.’
There are greater than three million households with pre-payment meters.
Citizens Advice chief government Clare Moriarty stated: ‘Last winter, all of us noticed that the rotten core of debt assortment observe within the vitality sector was not only a case of 1 dangerous apple – the foundations had been merely not being adopted.
‘As the momentary ban on force-fitting involves an finish, folks want reassurance from suppliers that they will not be wrongly compelled on to a meter when there’s clear proof they should not be.’
What is the prepayment meter scandal?
Many vitality corporations compelled clients to get these meters, which require customers to pay upfront for any vitality used.
Energy firms did this as a result of households had been falling behind with vitality payments.
A sensible meter may be swapped to pre-payment remotely in lots of circumstances, with no go to from vitality agency employees.