The number of households being forced onto prepayment meters has rocketed over the past few months - but what are your rights?
With standard credit meters, you pay for energy after you've used it but with prepayment meters, you have to pay in advance and the cost of energy is usually more expensive.
Citizens Advice revealed that around 600,000 people were switched onto a prepayment meter last year and warned that a further 160,000 people could be put on them before the end of the winter if nothing changes.
Your supplier has to follow licence conditions set by Ofgem, as well as the Government laws and regulations, and if they do not follow them then they can face repercussions from the regulator.
If you are being threatened with a prepayment installation then you will need to know your rights.
Sadly, suppliers are allowed to force a prepayment meter onto you if you are in energy debt as they are often installed as part of a plan to repay the debt you owe to the energy supplier.
Under the current rules of the practice, suppliers don't need your permission to do this, and you don't have an automatic right to refuse.
However, according to Ofgem rules, suppliers can only do this as a "last resort" and they must explore other options before putting you on a prepayment meter.
The regulator’s guidelines say that you must be given at least 28 days to repay your debt before your energy provider can suggest a prepayment meter.
According to the energy regulator, your supplier can only force a prepayment meter through a court warrant only after they have taken "all reasonable steps" to agree payment with you.
Consumer rights expert Martyn James said: "I've been warning about forced meter replacements for years - but most people I speak to aren't aware that this can happen.
"Sadly, all a firm needs to do to change your meter is apply for a court order to enter a property. Once granted, they can enter your property even if you are not in.
"The main issue is - is this even appropriate given the energy price crisis - and has the firm done this as a last resort (as it is supposed to) or has it jumped the gun?
"In one shocking case I saw last year, a young family found their meter had been changed forcibly while they were on holiday - but the energy firm had got the wrong house!
"Needless to say, this kind of error is rare but totally unacceptable."
If you have a smart meter, it can be switched to a prepayment meter remotely after the "reasonable steps" have been taken.
Who can't be put on a prepayment meter?
Your provider must also look at your personal circumstances before suggesting one.
Your meter must also be "safe, practical and easy for you to get to" meaning your supplier must consider a range of factors, including:
- Whether you're able to understand and operate the prepay meter, including topping up for example, whether you have a physical or mental disability preventing you from being able to use a prepay meter.
- How far you live from a shop that lets you top up with cash if you want or need to use cash to top up
- Whether you need a continuous supply for health reasons, such as having medical equipment that needs a constant electricity supply
- The physical location of your meter so whether it's placed high on a wall, outside or in a room to which you don't have access.
If you have a high risk of "self-disconnecting" which means you have run out of gas or electricity because you cannot top up your meter, then you can tell your supplier.
If it is not safe or practical for you to be in a prepay meter for any of these reasons then your supplier should not put you on a meter.
If your supplier suggests a prepayment meter regardless, then you can refuse it if it wouldn't be safe or practical for you - for example, if you're disabled or seriously ill.
If it installs one, then you can complain and ask to be switched back.
What is the process of putting you on a prepayment meter?
Energy suppliers must follow a process when they suggest putting you on a prepayment meter and must have a valid reason for doing so such as having debt after falling behind on bills.
Your supplier must also communicate the process with you clearly and needs to tell you if it plans on putting you on a prepayment meter.
It should also say the exact reasons for the decision and outline all of the other options you could have.
Energy companies should also provide at least seven working days' notice of the installation so if you are on a smart meter then you should not have it switched to a prepay meter out of the blue.
If you have not communicated with your supplier about the debts, then it can get a court warrant to enter your home and install one.
Can you complain if your supplier hasn't followed Ofgem rules?
If your supplier hasn't followed the correct process or has put you on prepay when it shouldn't have, you can, and should, raise a formal complaint.
Your supplier should have its complaint process "clearly set out" to customers on its website and you can raise the complaint directly with them through email, phone or letter.
If you've already tried contacting your energy provider and it's been more than eight weeks since you made your formal complaint, or you've received a deadlock letter which is when neither of you can reach an agreement, you can then take it to the free Energy Ombudsman.
This is an independent body that handles disputes between consumers and energy firms and you can refer the case to them within 12 months of receiving the "deadlock" letter.
The Ombudsman can make a company correct the problem, apologise and explain what happened, and pay compensation.
Decisions from the energy ombudsman are binding which means the energy company has to comply.
