Action taken regarding forcing prepayment meters
The Times has reported that British Gas contractors, employed by Arvato Financial Services, were found to have broken into homes, including those with vulnerable people to fit the prepayment meters. Since then other energy companies have come forward to say that will suspend forced prepayment installations.
Ofgem has now asked all providers to do the same and “to look at their relationships with any third-party contractors and examine incentives that could give rise to poor and unacceptable behaviours.”
I welcome Ofgem’s swift action, it is good to see that the regulator has recognised the appalling nature of the revelations and the possibility that it is not only British Gas making an awful situation worse.
Under Ofgem’s prepayment meter rules:
“A supplier can force-fit a prepayment meter by warrant only after they have taken all reasonable steps to agree payment with you. It should be a last resort to avoid disconnecting your supply”.
But although it would appear that in many cases this isn’t happening.
In addition, the rules state:
“Suppliers can’t force-fit a prepayment meter under warrant for people in very vulnerable situations if they don’t want one, or charge them for warrant costs on debts. Nor can they use warrants on people who find the experience very traumatic.
Warrant charges for debts are capped at £150 for everyone else.”
Ofgem needs to go much further in protecting vulnerable energy customers:
It would appear that at least one supplier has been breaking legal requirements by forcing those in vulnerable situations onto a PPM.
Furthermore, consumers have been charged £150 for having their house broken into. Ofgem needs to ensure that these charges and any associated with them are immediately refunded to these customers’ accounts and that they are put back onto credit billing, if wanted.
As for the companies contracted by British Gas and other energy companies, I have a lot to say about these “debt sharks”!
Arvato Financial Services, and all similar debt collectors, must now stop profiteering from the plight of innocent people who are having trouble paying extortionate energy bills.
Ofgem statement on forced prepayment installations provided by email from Ofgem press office on 2 February 2023
Jonathan Brearley, CEO of Ofgem, said:
“I’ve warned all domestic energy suppliers to get their house in order on forced instalments of pre-payment meters (PPMs). I ordered our biggest ever market review into pre-payment meters (PPMs) to uncover poor practice – and I will not hesitate to take the strongest action in our powers where needed.
“No energy CEO can shirk their legal and moral responsibilities to protect their own customers, especially the most vulnerable. These are serious allegations for British Gas to deal with and we are opening a comprehensive investigation into British Gas on this issue and we will not hesitate to take the strongest action needed. It is right British Gas has apologised following the very worrying allegations in The Times, but millions of customers expect action not warm words.
“It is astonishing for any supplier not to know about their own contractors’ behaviour, especially where they are interacting with the most vulnerable in our society. That’s why, today, I’ve asked all suppliers to review all activities regarding PPM warrants. Suppliers need to reassure us that the processes for customers being moved onto PPMs are compliant with all Ofgem rules and, until this is done, we have asked them to pause forced installations. Many have already come forward and agreed to do this until their boards are satisfied vulnerable customers are protected. I’ve also asked them to look at their relationships with any third-party contractors and examine incentives that could give rise to poor and unacceptable behaviours.
“We will not allow suppliers to take risks with vulnerable, elderly or sick customers many of whom could be at serious risk without power. I know many suppliers are struggling financially and there is a wider affordability debate that needs to happen – I have already been clear that some kind of social tariff is needed to tackle the route of the debt problem causing many people to be put onto PPMs. However, there are examples of best practice within the supplier community of really looking after vulnerable customers carefully which proves this issue can be handled fairly and sensitively by suppliers.”
Ofgem statement Energy regulator outlines next steps on forced Prepayment Meter (PPM) installations 21 February 2022
- Ofgem CEO calls on suppliers to check their recent forced and remotely switched PPM installations and consider removal and compensation where rules were not followed
Britain’s energy regulator, Ofgem, has today (Tuesday 21 February 2023) set out the next steps in the British Gas investigation and Prepayment Meter (PPM) review to support and protect energy customers when suppliers fit PPMs by force or via remote switch.
Ofgem CEO, Jonathan Brearley, has also called on all suppliers to use the pause in installations (lasting until 31 March 2023) to review all of their recent forced and remotely switched PPM installations, and consider if any need to be reversed, and compensation offered where the strict rules have not been followed.
The regulator has today announced:
- The terms of reference of the urgent investigation into British Gas (see notes to editors)
- The scope of the in-depth Market Compliance Review into the issue of how PPMs are handled across the market (see notes to editors), to include targeted engagement – facilitated through consumer groups and the Energy Ombudsman
- A call for all suppliers to use the current pause in PPM installations to proactively check if any have been installed incorrectly and, if so, to consider removing them and offering compensation where appropriate. Ofgem will be checking actions but has made clear that suppliers should not wait to act themselves.
- The launch of urgent work with stakeholders to look at what further protections may be needed within the rules, regulations and guidance around PPMs and seek views on other measures that could reduce the need for PPMs to be installed or switched to remotely, to conclude by the end of March 2023
Jonathan Brearley, CEO of Ofgem, said:
“As a result of the unprecedented surge in energy prices, households across the country are facing significant energy bills and this has meant many are finding themselves in debt and being forced onto prepayment meters (PPMs). I am concerned about the way customers in already distressing situations are being treated when suppliers force them onto PPMs. That’s why, today, we have set out further details on the two investigations, one into British Gas for potential breaches that have been alleged indicating that something went very badly wrong at British Gas and the other into PPMs across all suppliers to assess whether this is an isolated case.
“The rules and regulations are clear that installing forced PPMs should only be done as a last resort and only where it is safe and practicable to do so. We expect suppliers to treat customers with compassion and professionalism and those executing a warrant should take into account what they find when they visit a home and pause the installation if they see a safety risk. Where this hasn’t happened, we will hold suppliers to account.
However, I’m telling suppliers not to wait for the outcome of our reviews and to act now to check that PPMs have been installed appropriately, and if rules have been broken, offer customers a reversal of installations and compensation payments where appropriate. There will also be fines issued from Ofgem if the issue is found to be systemic.
“We are taking this issue extremely seriously and customers should feel reassured that where the rules have been broken, Ofgem will act.”
Utility Warehouse forces prepayment meter and provides no instructions
See Energy runs out for Utility Warehouse customer one case where Utility Warehouse left a customer with no way to pay on her pre payment meter and how I got her redress after 20 emails.
Energy Ombudsman statement
I asked the Energy Ombudsman for a statement regarding complaints they had received regarding prepayment meters. A spokesperson said ”
Thankfully the Energy Ombudsman hasn’t seen relatively large volumes of disputes relating to pre-payment meters, but we understand that this can be one of the most distressing issues for consumers.
Unfair installation of pre-payment meters would fall into our remit. Before a consumer contacts us, they should contact their provider first who’ll aim to resolve their dispute. Suppliers have 8 weeks to resolve the dispute, unless they issue the consumer with a deadlock letter enabling them to come to us sooner. We recommend keeping a log of any telephone calls or interactions with their supplier as this will make it easier to explain the dispute and their efforts to resolve to us.”
If you have have had a problem with your energy supplier take it to the Energy Ombudsman.
Edit 09 May 2024 Centrica (British Gas) boss says everyone should be forced to have a SMART meter.
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Help with complaining about energy
How to save money on and complain about, energy various posts to help with all aspects of energy.
Help with paying energy bills
Ofgem provides help with links from its page Getting help if you can’t afford your energy bills. Its rules state that suppliers must work with you to help you if you are in financial difficulty.
This might include setting up a payment plan, payment breaks, more time to pay, access to hardship funds or providing details to the Priority Register. If you are vulnerable you should be on your supplier’s list.
There may also be access to hardship funds and grants from various other organisations. You may also be able to get 60 days’ space from creditors to focus on getting debt advice and setting up a debt solution.
You can also get debt advice from Citizens Advice, StepChange and National Debtline.
Go to Turn2Us who provide information and advice on what help is available including charities that will help you pay your bills.
In summary, if you are having problems talk to your energy supplier, they are obliged to help you! Keep everything in writing so you have the evidence should you need to take the matter further such as to the Energy Ombudsman.
Further help to complain about energy and more
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