Ofgem announced in January 2023 that it would open a Market Compliance Review (MCR) into involuntary prepayment meter (PPM) practices across domestic energy suppliers, following allegations in the media and preliminary investigations opened towards the end of 20221. The regulator set out the next steps on 21 February 2023, publishing the terms of reference for an urgent investigation into British Gas and the scope of the market-wide review2.
Ofgem issued a Provisional Order to British Gas at the start of February 2023 temporarily banning it from any forced installation or remote mode switch2. All other suppliers agreed to voluntarily suspend forced installations of prepayment meters and remote switching of smart meters to prepayment mode until 31 March 20232. The British Gas investigation examines whether the company took all steps required under its licence to support customers in debt before installing a PPM or disconnecting them, whether it systematically assessed safety and practicability, and whether representatives had the necessary skills and acted fairly2.
The market-wide review covers governance, policies, risk management, processes, controls, management information, training programmes and assurance2. Ofgem also launched work with stakeholders on what further protections may be needed, to conclude by the end of March 2023, and called on suppliers to use the pause to check whether any PPMs had been installed incorrectly and to consider removal and compensation2.
"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."
Ofgem's later report on the review, published 3 June 2026, found that it did not uncover widespread instances of inappropriate PPM installations1. A reassessment found that involuntary PPMs were installed when it was not safe and reasonably practicable in less than 2% of the customer accounts reviewed, which is 1,925 instances out of over 150,000 accounts1. Suppliers paid £7 million in compensation, wrote off £13 million in customer debt, and provided £55 million in support through hardship payments and debt relief1. Compensation levels set out in the report range from goodwill payments of £40 to £60 for process misalignment, data quality and record keeping, to £1,000 for inappropriate installation, switch or use of a PPM1.
| Detriment | Compensation level |
|---|---|
| Process misalignment, data quality and record keeping | Goodwill payments of £40 to £60 on a case-by-case basis |
| Insufficient debt support | £250 |
| Unfair customer treatment | £250 |
| Vulnerability not considered | £500 |
| Inappropriate installation, switch or use of PPM | £1,000 |
Strengthened rules came into force in November 2023, and the first suppliers restarted involuntary PPM activity in January 20241. British Gas has never been part of the PPM MCR as it was subject to a separate Enforcement Investigation1. Ofgem opened an Enforcement investigation into Utilita's compliance in November 2024, and in May 2025 an ongoing Enforcement investigation into OVO's pre-payment meter practices was extended to include the PPM MCR1.
Why it matters for households
A prepayment meter means a customer must pay in advance for their energy by topping up with a smart card, key or cash token, and fitting one by force means a supplier can enter a house using force after obtaining a court warrant2. Under the rules at the time, suppliers could move customers onto PPMs by force if they were behind on bills and after all other options had been exhausted, but the practice was banned altogether for certain highly vulnerable customers, such as those with medical equipment needing constant power, those with severe mental health problems, or those who would struggle to top up2. Remote switching means a smart meter is switched to PPM mode remotely by the supplier2.
For a household, an involuntary PPM changes how energy is paid for and can affect supply if credit runs out. The review found cases where a PPM was unsuitable, for example where a customer needed to top up by cash and had mobility issues preventing access to a top-up location1. Suppliers were required to assess every customer with a PPM to confirm it was safe and reasonably practicable, and must now complete an assessment annually1. The rules governing involuntary installation were reinforced, and suppliers had to demonstrate they met the new requirements, supported by a second independent audit, before restarting any involuntary PPM activity1.
What happens next
Ofgem's 2026 report states that all suppliers can now carry out involuntary PPM activity, although not all have chosen to do so1. Customers who were involuntarily switched or had a PPM fitted and feel they should have been contacted by their supplier but have not been are advised by Ofgem to contact their supplier, and, if unresolved, to follow the supplier's complaints procedure and refer the matter to the Energy Ombudsman1. The Utilita and OVO enforcement investigations remain separate from the MCR1.