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Daily Mirror
Daily Mirror
Business
Levi Winchester

Ofgem announces new rules on prepayment meters - what it means for you

Energy suppliers have agreed to sign up to stricter rules for prepayment meters - but some campaigners have said the new measures "do not go far enough".

The new code of practice released by watchdog Ofgem states prepay meters will no longer be forcibly installed in the homes of people over 85.

The practice will also be banned in households where someone has serious health conditions.

Energy firms will have to make at least ten attempts to contact a customer going forward, and conduct a “site welfare visit” before installing a meter.

If someone is forced on to a prepay meter - either by warrant or remotely - they will now be given £30 of credit initially to reduce the risk of them losing supply.

Suppliers have been told to identify where meters were wrongfully installed as well, and to return the customer to their previous tariff and offer compensation.

This applies to all energy suppliers in England, Scotland and Wales and is designed to protect vulnerable customers.

However, some campaigners have called for a total ban on forcible installations instead and said the new rules won't help everybody.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "What about elderly people below the age of 85?

"Also some disabled people could still miss out - people using power to charge their wheelchairs, for example. There will be people who aren't covered."

It comes after an investigation by The Times found debt agents acting on behalf of British Gas were forcing entry into the homes of vulnerable people.

Ofgem placed a temporary ban on all forcible installations following the newspaper report. Last month, Ofgem said the ban would lift "only when and if" firms follow a new code of practice.

Representatives acting on behalf of suppliers will now have to wear body cameras or audio equipment when they visit the home of a customer as part of the measures announced today.

Prepayment meters are typically installed in the homes of people who have fallen behind on their bills.

Customers must then top-up their meter in order to keep receiving their energy supply, or risk being cut off.

But these are more expensive than paying for direct debit - leaving families more at risk of falling further behind on their bills.

Ahead of his Budget last month, Chancellor Jeremy Hunt announced he will end the “prepayment premium” by making sure these customers will pay no more than someone paying by direct debit from July.

Four million households are currently on a prepay meter.

Under the new rules confirmed today, suppliers will no longer be able to forcibly install a prepay meter on the highest risk customers including...

  • Households which require a continuous supply for health reasons

  • Households over 85 years of age if there is no other support in the house

  • Households which contain a person with severe health issues including terminal illnesses or those with a medical dependency on a warm home

  • Households where there is no one that has the ability to top up the meter due to physical or mental incapacity

Jonathan Brearley, CEO of Ofgem, said: “Ofgem’s new voluntary Code of Practice is a minimum standard that clearly sets out steps all suppliers must take before moving to a PPM.

“If and when involuntary PPMs are used, it must be as a last resort, and customers in vulnerable situations will be given the extra care and consideration they deserve, over and above the rules already in place, by suppliers – something that has clearly not always been happening.

“This new Code of Practice means, for some people, PPMs should never be installed, and, for high-risk groups, their energy needs must be protected with a higher level of consideration.

“The Code requires suppliers to become more attuned to the needs of all their customers in vulnerable situations, including if their circumstances change and reassessing if or when they do, and apply better compassion and professional expertise.”

Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “This voluntary code of practice is a much needed improvement in the protections people have against the forced installation of a prepayment meter by energy companies.

“It’s now up to suppliers to follow the rules and for Ofgem to crack down quickly on any sign of bad practice. The regulator must also act swiftly to make this voluntary code mandatory.”

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