The boss of Ofgem has today called on energy suppliers to check their recent forced and remotely switched prepayment meter (PPM) installations and consider offering compensation to customers where rules were not followed.
A few days ago, Ofgem issued a provisional order to British Gas temporarily banning the company from doing any forced installation or remote mode switch.
This followed a Times investigation that uncovered forced PPM installations on vulnerable customers’ homes.
Ofgem also made an agreement with all other suppliers to voluntarily suspend forced installations of prepayment meters and remote switching of smart meters to prepayment mode until 31st March 2023.
Jonathan Brearley, Chief Executive of Ofgem, said: “As a result of the unprecedented surge in energy prices, households across the country are facing significant energy bills and this has meant many are finding themselves in debt and being forced onto PPMs.
“I am concerned about the way customers in already distressing situations are being treated when suppliers force them onto PPMs.
“The rules and regulations are clear that installing forced PPMs should only be done as a last resort and only where it is safe and practicable to do so. We expect suppliers to treat customers with compassion and professionalism and those executing a warrant should take into account what they find when they visit a home and pause the installation if they see a safety risk. Where this hasn’t happened, we will hold suppliers to account.
“However, I’m telling suppliers not to wait for the outcome of our reviews and to act now to check that PPMs have been installed appropriately and if rules have been broken, offer customers a reversal of installations and compensation payments where appropriate. There will also be fines issued from Ofgem if the issue is found to be systemic.”
Responding to Ofgem’s outline of its next steps on forced PPM installations, Gillian Cooper, Head of Energy Policy at Citizens Advice, said: “We’ve seen far too many cases of people, who are struggling to pay their bills, being forced onto a prepayment meter despite clear evidence this isn’t safe for them.
“We’re particularly worried about disabled people and those with long-term health conditions. Our research shows nearly one in five households including someone in these groups, who ran out of credit last year, went on to spend at least two days without an energy supply.”
Article source: https://www.energylivenews.com/2023/02/21/ofgem-energy-suppliers-urged-to-compensate-in-case-of-prepayment-wrongdoing/
