Households that were moved onto a prepayment meter without permission between 1 January 2022 and 21 January 2023 may be able to claim compensation if their supplier did not follow the rules properly, according to Ofgem1. The regulator sets out the conditions under which a supplier may install a prepayment meter without permission, and the steps it must take first.
Ofgem states that a supplier can install a prepayment meter without permission only where the household is building up an energy debt and other ways of recovering that debt have not worked1. The supplier can obtain a warrant to enter the property and install a meter, or remotely switch an existing smart meter to prepayment mode1. Before doing so, the supplier must make reasonable efforts to agree another repayment method and offer support, make at least 10 attempts to contact the household by different methods such as phone calls, letters or text messages, and visit the home to check whether a prepayment meter is safe and suitable1.
"Installing a prepayment meter without your permission should always be a last resort."
Ofgem also lists circumstances in which a supplier must not install a prepayment meter, including where anyone in the home has a terminal illness or severe health condition, where someone depends on a continuous supply for medical reasons or powered medical equipment, where everyone in the home is 75 or over with no one else able to provide support, where a child aged under 2 lives there, where no one can top up the meter because of a physical or mental health condition, or where temporary circumstances such as pregnancy or bereavement make it unsafe or unsuitable1. Once a meter is installed or a smart meter switched remotely, the supplier must give £30 credit1.
The two organisations give different end dates for the compensation window. Ofgem states 21 January 20231; Citizens Advice states 31 January 20233. Citizens Advice adds that suppliers will contact eligible households directly, that letters will be sent at different times, and that households moved at other times will not automatically receive compensation but can still complain3. It sets out example amounts: £40 to £60 where the correct process was not followed, £250 where support with debt was insufficient or the household was treated unfairly, £500 where vulnerability was not properly assessed, and £1000 where the household was put at risk of serious harm or the installation was unprofessional3.
Why it matters for households
A forced prepayment meter changes how a home pays for energy: credit is bought in advance rather than billed afterwards, so supply depends on topping up. That shifts control over when energy is available away from the household and towards the meter balance. The rules described by Ofgem exist to limit when that can happen without consent, and the compensation route covers cases where the process was not followed. The £30 credit is separate from any compensation and applies on installation or remote switching1. Households that believe the rules were not followed can ask the supplier to explain its decision and what checks it carried out, and can take a complaint to the Energy Ombudsman if they are not satisfied with how it was handled1. Citizens Advice warns that some scammers are posing as energy companies or government departments to obtain personal information, and advises checking whether a contact is genuine3.
What happens next
Suppliers are to write to households eligible for compensation, with letters sent at different times3. No deadline for claiming, and no total number of affected households, has been reported.
Sources3 cited
- Installing a prepayment meter without your permission | Ofgem, ofgem.gov.uk
- Installing a prepayment meter without your permission | Ofgem, ofgem.gov.uk
- Forced prepayment meter compensation - Citizens Advice - Citizens Advice, citizensadvice.org.uk