Energy firms stop fitting pre-payment meters by force after Ofgem slams ‘unacceptable’ practices

Major energy companies forcibly stopped installing prepayment meters after regulator Ofgem intervened.

Energy suppliers have come under fire for switching from standard utility meters to prepaid versions during the winter and a crisis in the cost of living. Smart meters can be switched remotely, but non-smart meters are physically removed and replaced.

Energy companies do this if a customer has not paid their bills, but prepayment for electricity and gas is not only more expensive, if these meters are not refilled, customers are without power.

Over the weekend, the Times reported that vulnerable British Gas customers had been broken into by contractors working for the energy company.

In response, Ofgem said the practice was ‘unacceptable’, and British Gas has now said it will stop forcibly fitting the meters over the winter.

A spokesman for Ofgem said: ‘It is unacceptable for a supplier to impose forced installations on vulnerable customers who are struggling to pay their bills before all other options have been exhausted and without conducting thorough checks to ensure it is safe and practical to do this.’

Ofgem’s crackdown has led major UK energy companies to shut down the practice.

Aside from British Gas, the largest UK consumer energy companies are Eon, EDF, Ovo and Scottish Power. Eon, EDF and Scottish Power have now all agreed not to force install any prepayment meters until the end of winter.

In practice, this means that the energy companies have agreed to interrupt the court process to get the warrants needed to enter property that fits on prepayment meters. Ovo stopped doing that in November, This Is Money understands.

Some consumers with prepayment meters have also been charged £150 for court costs related to the break-in of their home by an energy company.

Consumer advocate Helen Dewdney, who runs the website The Complaining Cow, said: ‘Ofgem must ensure that these charges and all charges related thereto are immediately refunded to these customers’ accounts and that they are re-charged if they so wish. .’

Concerns: Energy companies could forcibly install a prepayment meter if a customer hasn’t paid their bills, but Ofgem has said this risks leaving vulnerable people without power

What the energy companies say

Chris O’Shea, chief executive of British Gas owner Centrica, said: ‘Having recently reviewed our internal processes to support our prepayment customers, as well as creating a new £10 million fund to support those prepayment customers who need the most help need, I am very disappointed that this has happened.

“As a result, we made a new decision on Wednesday morning (February 1) to suspend all of our activities with prepayment orders at least until the end of winter.”

An Eon spokesperson said: ‘We have suspended the installation of prepayment meters under orders, as well as the remote switch from smart meters to a pay-as-you-go function, unless requested by the customer. This is until the end of winter.’

An EDF spokesperson said the company had “suspended the forced installation of prepayment meters” while it was reviewing its processes.

A ScottishPower spokesperson said: ‘Affordability is a major concern for customers and our processes are tailored to the customer’s vulnerabilities and circumstances.

“We would not transfer a customer to prepayment without prior notice and installing a prepayment meter is always a last resort only after we have exhausted all other options to talk to and work with customers on debt repayments.

“We regret the reported behavior and have suspended all warrant postings while a thorough investigation is underway.”