Sir Robert Neill MP called in the House of Commons on Monday 6 February for an inquiry into the pre-payment meter (PPM) scandal, saying the process is flawed and should not continue, and that the suitability of some of those representing energy suppliers and Ofgem in court must also be examined1.
Speaking in the Commons, he said the scandal must indicate two things:
"First, that the process itself is flawed and should not be continued and, secondly, that there must be an inquiry into not just the process itself, but the suitability of some of those who are representing the energy suppliers and Ofgem in court."
He added that representatives had either given misleading information by inadvertence or potentially done so deliberately, which on oath amounts to perjury, a matter he said brings the court process into disrepute and needs to be investigated1.
The calls follow official Ministry of Justice data showing magistrates courts in England and Wales granted 920,855 warrants between January 2020 and December 20221. Media reports suggest around 30,000 were granted in England and Wales in January 2023, and 32,000 warrants were granted in Scotland in the first ten months of 20221. The End Fuel Poverty Coalition said energy firms had provided only "half the picture" to the Secretary of State for Energy and Net Zero after the Government asked suppliers to set out how many warrants they had applied for and how they would make up for any wrongdoing1.
On costs, the Coalition cites Citizens Advice figures that every PPM household overpaid by £258 on average this winter, and an Ofgem figure that PPM installation cost £150, giving a basic overpayment of £4081. For a household on a PPM since 2019, it says the overpayment compared with direct debit was around £102 across three winters (winter 2019/20 £38, winter 2020/21 £28, winter 2021/22 £32), a total of £6001. It says 2019 is the starting point because that is when Ofgem changed the rules to make PPMs much more expensive1.
| Item | Figure |
|---|---|
| Warrants granted, England and Wales, Jan 2020 to Dec 2022 | 920,855 |
| Warrants reported, England and Wales, January 2023 | around 30,000 |
| Warrants reported, Scotland, first ten months of 2022 | 32,000 |
| Average PPM overpayment this winter | £258 |
| PPM installation cost | £150 |
| Basic overpayment | £408 |
| Overpayment since 2019 (three winters) | £102 |
| Total | £600 |
The Coalition says indicative advice from Leigh Day Solicitors, which is not a formal legal opinion, highlighted four areas where there might be reason for further compensation: possible breaches of the European Convention on Human Rights (articles 6 and 8), the Equality Act, trespass rules, and breaches of contract or licence conditions1. It has also set out a five point plan for Government: moving people off legacy PPMs more systematically, removing the premium paid by PPM and standard credit customers, reducing standing charges for PPM customers, addressing debt build up through a debt repayment matching scheme funded by fines on energy firms, and wider reforms such as a social tariff or free band of energy1.
Why it matters for households
A warrant allows a supplier to enter a home and install a prepayment meter, and the household is charged for that installation1. Because PPM rates have been higher than direct debit since Ofgem's 2019 rule change, a household moved onto one can face both the installation charge and a continuing higher unit cost, which is the basis of the £408 and £600 figures cited1. For a home already carrying energy debt, that combination reduces the money available for repayment and for other bills. The dispute over what suppliers told the court also matters because the warrant process is the point at which a household loses control over how its energy is supplied. The regulation-policy hub covers how such rules are set and reviewed, and Ofgem: What the Energy Regulator Does and What It Covers sets out the regulator's remit. Households facing debt repayment through a meter can read Repaying Energy Debt Through a Prepayment Meter, and those disputing a supplier's conduct can read Energy Complaints and Redress: Ombudsman, Citizens Advice and Ofgem. Grants for energy debt are covered in The British Gas Energy Trust: Grants for Energy Debt, and the wider link between bills and supply control in Energy Bills and Energy Independence.
What happens next
No date has been reported for any inquiry, and no response from the Government, Ofgem or energy suppliers to Sir Robert Neill's call has been reported1. The Coalition's five point plan and its compensation case have been put to Government, but no timetable for a decision has been reported1.