The Government said it has been assured by every energy company in Britain that they will follow the rules which forbid them to forcefully install pre-payment meters in the homes of vulnerable customers. The practice already goes against the rules, but there have been signs in recent weeks that not all suppliers are following the regulations.
It is also unclear how big an impact the commitments to the Government will have. Companies need a warrant before they can forcibly enter someone’s home to install a pre-payment meter and magistrates have already been told not to issue any more.
The news comes after the practice was pushed into the headlines last week with a Times investigation which revealed some of the methods used by a British Gas subcontractor. Regulator Ofgem has since launched an investigation, and ministers have demanded better practices from energy suppliers.
The Department for Business, Energy and Industrial Strategy said it has also asked all suppliers to set out how they are supporting their customers, how many warrants to forcefully enter people’s homes they have applied for, and how they will make up for any wrongdoing.
In an interview on LBC which is set to be broadcast on Friday evening, Akshay Kaul, a director at Ofgem, said: “I think if pre-payment meters have been incorrectly installed, that is not in compliance with the rules, and that is what the investigation ultimately concludes, then yes, then consumers have a right for them to be uninstalled, if that is what they wish. They have a right to seek compensation, and that is what we will be asking any suppliers that are in that situation to do.”
Energy Security Secretary Grant Shapps said: “All suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game when it comes to their reviews. But I am angered by the fact some have so freely moved vulnerable customers on to pre-payment meters, without a proper plan to take remedial action where there has been a breach of the rules. So, I have only received half the picture as it still doesn’t include enough action to offer redress to those who have been so appallingly treated.”
