Ofgem bans forced prepayment energy meters for over-85s

Ofgem today banned the forced installation of prepaid energy meters in homes of the over 85s.

It comes after companies including British Gas sent collection agencies to break into the property of people struggling to pay their bills and forcibly install the appliances.

All suppliers in England, Scotland and Wales have signed a code of conduct with clear procedures to protect vulnerable customers. Workers must now also wear body cameras, the energy regulator announced.

The new rules mean stricter scrutiny of PPMs enforced under command installations or remotely switched without permission.

The regulator’s CEO, Jonathan Brearley, said: ‘Ofgem’s new voluntary code of conduct is a minimum standard that clearly sets out the steps all suppliers must take before moving to a PPM.

Energy Minister Grant Shapps has welcomed Ofgem’s new code of practice banning the forcible installation of prepayment meters in the homes of over 85s

“If and when involuntary PPMs are used, it should be a last resort and customers in vulnerable situations will receive the extra care and attention they deserve, on top of the rules already in place, by suppliers – something that clearly hasn’t always happened.

“This new code of practice means for some people that PPMs should never be installed, and for high-risk groups, their energy needs should be protected with greater care.”

The rules now require suppliers to make at least 10 attempts to contact a customer – and complete a ‘wellness site visit’ before installing a PPM, The protector reported.

An investigation through The times earlier this year revealed how vulnerable customers – including the disabled and the mentally ill – were forced by British Gas to use the reversal meters or instead have their gas shut off.

Suppliers will reportedly have representatives who try them on carry cameras or audio equipment, and they are not allowed to fit meters for customers over the age of 85 or anyone with a terminal illness.

Those forced into a prepayment meter – either by writ or by remote – are initially credited with £30 to reduce the risk of losing stock.

Suppliers have also been told to identify where meters have been installed in error and to revert those customers to their previous rate and offer compensation.

Forced installations will also be considered a last resort, the code is expected to spell out. The Guardian reported that Mr Brearley expects suppliers to ‘treat their most vulnerable customers as they would want their own loved ones treated’.

Companies were temporarily banned from installing prepaid energy meters under orders.

In the wake of the The Times inquiry, Energy Secretary Grant Shapps said he was “appalled” by reports that British Gas was sending collection agencies to “break into homes” and force-fit overturn meters on “vulnerable” customers.

Mr Shapps announced that the government would hold meetings with the company’s parent company Centrica to investigate what he called a “systemic failure”.

All suppliers in England, Scotland and Wales have signed a code of conduct with clear procedures to be followed to protect vulnerable customers. The new rules mean stricter scrutiny of PPMs enforced under command installations or remotely switched without permission (file photo)

Power companies can get court orders giving them the legal right to enter people’s homes and install prepayment meters if customers haven’t paid their bills. The customers must then top up to keep receiving gas supplies, and if they don’t, they risk having their heating shut off.

An undercover newspaper reporter worked for collection agency Arvato Financial Solutions, accompanying agents who used court orders to gain access to customers’ homes to force these meters.

Once a prepayment meter is installed, people have to top up to turn on the gas. Regular installments are then debited from the bank account and the delivery is closed if there is not enough credit to cover the cost of the gas.