Energy suppliers paying out more than £540,000 in compensation over prepayment meters

05 April 2024 , 21:15

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Energy suppliers paying out more than £540,000 in compensation over prepayment meters

It comes after Ofgem ordered a review of people who were forced onto prepayment meters between the start of 2022 and the end of January 2023

Energy suppliers have paid out £342,450 in compensation to 1,502 people after they were wrongly moved to a prepayment meter.

More payments of around £200,000 are also expected for a further 1,000 customers. It comes after Ofgem ordered a review of people who were forced onto prepayment meters between the start of 2022 and the end of January 2023. 

Ofgem had introduced a temporary ban on involuntary installations after an investigation by The Times found debt agents acting on behalf of British Gas were forcing entry into the homes of vulnerable people. Some energy firms have since been allowed to restart the force fitting of prepayment meters once again, but under tighter rules.

Energy suppliers cannot forcibly install prepayment meters in the homes of people aged 75 and over with no support and in households with children aged under two. Also included in this ban are households where someone has a severe health issue, and homes where someone has a medical issue which requires them to have a warm home.

Ofgem said customers have received different amounts of compensation, depending on their supplier and circumstances. Some people have received cheques, while others have had energy credit added to their account, or had debt written off.

Ofgem said: “If a customer thinks their supplier installed a prepayment meter or switched their smart meter to prepayment meter mode when they should not have, they may be entitled to compensation. Customers should contact their supplier, explain their circumstances, and make a complaint.

“For help making a complaint, consumers can contact Citizens Advice and Advice Direct Scotland. If customers need extra support, the complaint may be referred to Extra Help Unit and Energy Ombudsman. We are working with each agency to ensure that we are taking a joined-up approach.”

James Smith