Move to stop forcing meters

The UK Government said it has been assured by every energy company in Britain they will follow rules banning them from forcibly fitting prepayment meters in vulnerable customers’ homes.

The practice is already against the rules but there have been signs in recent weeks of breaches.

It is unclear what impact the commitments will have.

Companies need a warrant to forcibly enter someone’s home to install a prepayment meter and magistrates have already been told not to issue more.

The news comes after the practice was pushed into the headlines last week when a Times investigation revealed methods used by a British Gas subcontractor.

Regulator Ofgem has launched an investigation, and ministers have demanded better practices from suppliers.

The Department for Business, Energy and Industrial Strategy has asked suppliers how they are supporting customers, for how many warrants they have applied, and compensation issues.

In an interview on LBC last night, Akshay Kaul, a director at Ofgem, said: “I think if prepayment meters have been incorrectly installed, that is not in compliance with the rules, and that is what the investigation ultimately concludes, then yes, then consumers have a right for them to be uninstalled, if that is what they wish.

“They have a right to seek compensation, and that is what we will be asking any suppliers that are in that situation to do.”

Energy Security Secretary Grant Shapps said: “All suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game.

“But I am angered by the fact some have so freely moved vulnerable customers on to prepayment meters, without a proper plan to take remedial action where there has been a breach.

“So, I have only received half the picture as it still doesn’t include enough action to offer redress to those who have been so appallingly treated.”

Adam Scorer, chief executive of fuel poverty charity National Energy Action, said: “The secretary of state is right to push for urgent action to protect vulnerable consumers.

“An immediate halt to forced installation of prepayment meters must be followed quickly with clarity on how many vulnerable households should not have had these meters installed, a suitable compensation package imposed by Ofgem, and then a full review of the prepayment market.

“There are over four million households in England and Wales on a prepayment meter.

“They’ve had the rough end of the energy market for far too long and many have struggled most to redeem government support.”

Chancellor Jeremy Hunt indicated there would be no “major new initiative” to help households with energy bills from April.

The current support package will become considerably less generous then, despite the average annual household energy bill rising by about £900.

BANNED: Prepaid card credit meters are still being fitted.