The Energy Security Secretary, Grant Shapps, said on 10 February 2023 that all energy suppliers have now committed to ending the forced installation of prepayment meters in vulnerable customers' homes, following a request from the UK Government1. The claim was reported by National Energy Action (NEA), the national fuel poverty charity, which works across England, Wales and Northern Ireland1.
The Government has also asked all suppliers to set out how many warrants they had previously sought, and plans to compensate vulnerable customers for any wrongdoing1. NEA states that there are over four million households in England and Wales on a prepayment meter1.
Adam Scorer, chief executive of NEA, said the halt must be followed by further steps:
"An immediate halt to forced installation of prepayment meters must be followed quickly with clarity on how many vulnerable households shouldn't have had these meters installed, a suitable compensation package imposed by Ofgem, and then a full review of the prepayment market"
Scorer also said that prepayment customers "have had the rough end of the energy market for far too long" and that many have struggled most to redeem UK Government support during the energy crisis1. He added that unless there is a "huge shift" in how prepayment works, this part of the energy market "will remain wholly unfit for purpose"1.
The announcement follows concern over forced prepayment meter rules and the wider framework of prepayment meters and vulnerable customer protections. The Government's request to suppliers sits alongside existing arrangements covering disconnection, warrants and forced prepayment installation.
Why it matters for households
For a household on a prepayment meter, energy is paid for in advance, and supply can be cut off when credit runs out. A forced installation, usually carried out under warrant, moves a customer from credit billing onto prepayment, often because of debt. The commitment reported here concerns vulnerable customers specifically, meaning those the supplier or regulator judges unable to protect their own interests.
The practical effect for a home is that the route by which a supplier can compel a switch to prepayment is, according to the Secretary of State, closed for vulnerable households. That matters for energy independence because prepayment gives a household direct control over spend but little resilience: there is no arrears balance to spread, and no buffer between a missed top-up and going off supply. NEA's position is that the halt alone does not resolve this, and that the number of households affected, compensation and the future of the prepayment market all remain open1.
What happens next
The Government has asked suppliers to report how many warrants they previously sought and has said it plans to compensate vulnerable customers for any wrongdoing1. NEA has called for clarity on how many vulnerable households should not have had these meters installed, a compensation package imposed by Ofgem, and a full review of the prepayment market1. No timetable for any of these steps has been reported.