Householders who were moved onto a prepayment meter without permission between 1 January 2022 and 31 January 2023 may be entitled to compensation, under a scheme set out by Citizens Advice. The scheme covers both meters installed in the home and meters switched to prepayment remotely, where the supplier did not have the householder's permission1.
The consumer body states the qualifying period directly:
"between 1 January 2022 and 31 January 2023"
Payment depends on what the supplier did wrong. Citizens Advice gives the following figures for England1:
| Supplier failure | Compensation |
|---|---|
| Did not follow the correct process for moving the household to prepayment | £40 to £60, at the supplier's discretion |
| Did not give enough support with debt | £250 |
| Treated the customer unfairly | £250 |
| Did not properly assess whether the customer was vulnerable | £500 |
| Inappropriately installed, switched or made the customer use a prepayment meter, or put them at risk of serious harm | £1000 |
Vulnerability, in this context, includes disability or a long-term health condition, a need for warmth for medical reasons, living with children aged five or under, being over 75 and living alone, or having no one in the household who can safely reach, work or top up the meter. Citizens Advice notes pregnancy or recent bereavement as further possible grounds1.
Suppliers are expected to write to eligible households, and Citizens Advice says each supplier will send letters at different times. Householders who have not received a letter, or who are unsure whether one is genuine, are directed to contact their supplier using details from the supplier's own website. The body also warns that scammers have posed as energy companies or government departments to obtain personal information1.
For forced prepayment moves outside the qualifying period, compensation is not automatic, though a complaint to the supplier remains possible1. The rules governing when a supplier may force a prepayment meter onto a household are set by Ofgem, and Citizens Advice notes they may have changed since a particular move took place1. Separate protections for vulnerable customers apply, and the moratorium on involuntary installations is covered elsewhere on this site.
Why it matters for households
A prepayment meter changes how a home pays for energy: credit is bought in advance, and supply stops when the balance runs out unless emergency credit is used. That shifts the risk of running out of power onto the household, and it is the reason the compensation categories above are weighted towards cases where vulnerability was not assessed or debt support was not given1.
For a household's energy independence, the practical effect of the scheme is retrospective rather than preventive. It puts a price on procedural failures by suppliers, with the largest sums attached to cases involving risk of serious harm or unprofessional installation. It does not change how a meter operates once fitted, and it does not by itself restore a household to credit billing. The sums are fixed amounts rather than refunds of energy used, so they do not track the size of any debt or the cost of energy bought at prepayment rates.
The scheme also places the burden of response on the supplier: eligible households are told they will be contacted, not that they must apply1. Where no letter arrives, the route described is a direct complaint to the supplier.
What happens next
The qualifying period ended on 31 January 2023, so no further forced installations fall within it. Citizens Advice says suppliers will send letters at different times and does not give a deadline by which all letters must be sent; no closing date for claims has been reported1.
Sources1 cited
- Forced prepayment meter compensation - Citizens Advice - Citizens Advice, citizensadvice.org.uk