Full list of energy providers who can force fit prepayment meters again

26 February 2024 , 15:02

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Ofgem are allowing energy providers to force fit prepayment meters again (Image: Getty Images)

Ofgem has allowed another energy firm to force fit prepayment meters in the homes after banning the practice last year.

The energy regulator said Utility Warehouse had now met its "strict criteria" to restart involuntary installations of prepayment meters (PPMs). Ofgem has slowly allowed more and more energy suppliers to restart the banned practice over the first few weeks of this year. So far, E.ON, Tru Energy, EDF, Octopus and Scottish Power can force them onto customers.

Ofgem had introduced the ban after an investigation by The Times found debt agents acting on behalf of British Gas were forcing entry into the homes of vulnerable people last year. Ofgem said the ban would lift "only when and if" firms follow a new code of practice.

This new code includes conducting internal audits to identify when prepayment meters were wrongfully installed and offering compensation and a return to a non-prepayment payment method to any affected customers. Each firm must also make at least ten attempts to contact a customer before a prepayment meter is installed and carry out a site welfare visit. Firms also provide regular monitoring data to Ofgem.

However, certain customers who are considered "highest risk" are still protected from forced installations. This includes households with health issues that need to keep warm, people over 75 with no support in their home, and those with children under two years old.

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A Utility Warehouse spokesperson said: “We can confirm that we have satisfied Ofgem’s new criteria on involuntary prepayment meter installations - these will always be used as a last resort after we have explored all other options. We are committed to helping our customers manage their bills effectively and provide a range of support for customers who have difficulty in making payments."

A prepayment meter is also known as a 'pay-as-you-go meter' as you pay for your energy before you use it. If you fall behind on your direct debit energy bills, suppliers often install these devices if you have fallen into debt with your energy. Like paying off an overdraft, when you top up your prepayment meter, some of that credit will go towards paying off the debt.

In a statement Ofgem said protecting consumers was its "number one priority" and that it has made it clear that suppliers must "exhaust all other options" before considering forced installation of a prepayment meter.

An Ofgem spokesperson said: "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.

“We will continue to work closely with consumer groups and suppliers to make sure households understand their rights when it comes to prepayment meters and will regularly review our rules to make sure they are working to protect the most vulnerable. We would also strongly encourage consumers to make sure their personal details and circumstances are up to date with their supplier, so they can be taken into consideration if or when payment problems arise.”