Energy firms have been told they should "fix it now" and start compensating customers whose homes were wrongly fitted with prepayment meters. Regulator Ofgem is investigating but says companies should take action now and now wait for the outcome of its review.
Suppliers have been asked review the way their systems work after the Times revealed how contractors working for British Gas had broken into people’s homes. The company has apologised for the behaviour.
Ofgem chief executive Jonathan Brearley told Radio 4's Today programme he believed the regulator had been clear to companies about the rules. He rejected the accusation that Ofgem had been too slow on the issue.
He said "The installation of prepayment meters is protected in law. Following the Times investigation we said to the industry, 'We simply cannot continue in the way we are now' but it's a temporary suspension while we look at the rules and the behaviour of the suppliers involved.
"The one thing I do want to say to the customers is these things will take time, we're a regulator, we have to base what we do on evidence. but don't wait for the Ofgem process. If you know people have had a prepayment meter inappropriately installed, fix it now.
"That means going back to that customer, asking them whether they want to continue on that meter. If they don't change that meter and offer compensation where appropriate. We are going to investigate but companies don't need to wait for us to do it."
He insisted Ofgem had "laid out the rules really clearly" to energy firms. He added: "I think we've been very clear with the industry about what they expect. Yes The Times investigation uncovered behaviour that on the face of it, seems unaceptable."
There are more than four million UK households on prepayment meters. If people have repeatedly not paid their bills and have not responded to calls or letters, the company can install a meter which forces them to pay up front for their energy.
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It is seen as a less extreme option than cutting off their gas and electricity supply. But the PA news agency reported that in 2017 Ofgem had concerns about the impact this was having on vulnerable people, saying that in one case a customer had started to self-harm following a visit from their energy supplier’s representatives.
It changed the rules to make sure suppliers cannot get a warrant to force fit a prepayment meter for people in “very vulnerable situations” or those “who would find the experience very traumatic.” The proposals also capped the amount that other customers could be charged for the fitting to just £150.
