Energy suppliers have been officially banned from force-fitting prepayment meters for elderly people and those with infant children after a scandal over companies’ treatment of vulnerable customers.
The industry regulator, Ofgem, said on Wednesday that companies would be forbidden from forcibly installing prepayment meters for people over 75 years old with no support in their house and in homes with children under the age of two.
The move is an expanded and mandatory version of a code of practice for the forced installation of prepayment meters that suppliers signed up to on a voluntary basis earlier this year.
The Guardian revealed in April that energy suppliers had agreed to a ban on installing prepayment meters in the homes of customers over 85 without consent as part of a new code of conduct and would also make representatives wear body cameras.
Ofgem said on Wednesday that dropping the upper age limit to 75-year-olds with no other support in their home, and adding homes with very young children, would ensure more people are protected this winter.
The regulator belatedly stepped in to halt the installation of prepayment meters by force in February after repeated warnings from campaign groups and MPs, and only after the Times reported that debt agents working for British Gas ignored signs of vulnerability to fit the meters.
Suppliers agreed to the guidance on putting in the devices when households have run up energy debt after an outcry over agents using court-approved entry warrants to break in to install them. Magistrates were told to stop issuing the warrants in England and Wales.
Currently, no suppliers are carrying out involuntary installations and they face severe penalties if they do so, unless they meet strict criteria set by Ofgem.
Under the new rules, which come into effect on 8 November, suppliers must ensure they are acting in a “fair and responsible way”, with involuntary installations used only as a last resort.
Neil Kenward, the director for strategy at Ofgem, said: “Today’s enhanced rules are there to provide protection from bad practice while ensuring that, when needed, and as a matter of last resort, suppliers are using involuntary installations in a fair and responsible way.
“Ofgem will be monitoring suppliers’ behaviour closely to ensure they are complying with the spirit and letter of these rules. If that is not the case we will not hesitate to take action.”
Amanda Solloway, the minister for energy consumers and affordability, said: “The real test will be seeing these improvements made on the ground. I’ll be watching closely to make sure suppliers are sticking to the letter of the law and will support Ofgem in holding them to account.”
skip past newsletter promotion
Sign up to Business Today
Free daily newsletter
Get set for the working day – we’ll point you to all the business news and analysis you need every morning
Enter your email address Enter your email address Sign upPrivacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.
after newsletter promotion
Separately on Wednesday, Ofgem’s chief executive, Jonathan Brearley, told MPs on the energy security and net zero committee that consumers will face another winter of high bills, and without some of the government support available last winter.
He said: “There is a reality for customers this year: that support is not available. So, for many people, their bills will be very similar this year, and possibly worse for some, than they were last year.”
Brearley added that there was no reason for suppliers to fall short of industry rules on treatment of customers. “The difference to me between this year and last year is there was all sorts of turmoil in the market. There were many, many risks we were managing; they’re not there this winter. So [suppliers] have run out of excuses,” he said.
At a speech in London later on Wednesday, Brearley is expected to tell investors to put “pace over perfection” to rapidly build up energy infrastructure, as MPs and regulators attempt to rebalance Britain’s networks towards green energy.
