Energy suppliers agreed in February 2023 to stop force-fitting prepayment meters (PPMs) or switching smart meters to prepayment mode without consent1. The commitment followed evidence that firms were using the courts to obtain warrants to enter vulnerable people's homes and move them onto more expensive prepayment tariffs2.
The agreement was voluntary rather than a legal ban. Consumer Scotland, the statutory advocacy body for consumers in Scotland, describes it as a moratorium on forced installations of PPMs introduced for all domestic gas and electricity suppliers in February 2023, which was lifted from November 2023 for suppliers who met restart criteria set out and assessed by Ofgem3. In the interim period Ofgem strengthened its Code of Practice for the involuntary installation of prepayment meters and made the Code part of suppliers' licence conditions3. Ofgem's consumer advice for England and Wales states that more information on the rules suppliers should follow from November 2023 is available under new prepayment meter rules extending protections for vulnerable people1.
The voluntary approach drew criticism. The End Fuel Poverty Coalition said courts had granted over 13,000 warrants allowing energy firms the right to force entry into homes and businesses since the voluntary end was introduced in February 2023, with the Ministry of Justice unable to confirm why these warrants were granted4. Only two applications for warrants had been rejected by the courts since February2. The coalition also reported that energy companies were continuing to threaten households with warrants for entry to forcibly install PPMs despite the voluntary end to the practice4.
"It's clear that the voluntary approach to banning forced prepayment meters is just not working and MPs must now act to bring in a legal ban to the practice through the Energy Bill"
An amendment to the Energy Bill was tabled by Anne McLaughlin MP to bring in such a ban, with the coalition urging MPs to support amendments NC1 and NC2 during the committee stage4. Almost three-quarters of the public would back changes to the Energy Bill to ensure the Government introduces a legal ban on the forced transfer of homes onto PPMs, according to figures from the Warm This Winter campaign4.
The End Fuel Poverty Coalition also argued that a new voluntary code of conduct governing forced installation of prepayment meters, due to come into force from 1 October 2023, did not go far enough, failing to protect highly vulnerable groups and failing to tackle rising energy debt2. Consumer Scotland said it was too early to assess the impact of the new Code of Practice on supplier behaviour in relation to involuntary installation of PPMs and associated reforms to support consumers at risk from self-disconnection3.
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 meter runs out of money. The End Fuel Poverty Coalition notes that changing to a PPM runs the risk of households having to suddenly stop using energy as the meter runs out of money, which can mean people suffer the worst effects of living in cold damp homes during winter months4. For a household, the practical question is whether a supplier can move it onto prepayment without agreement, and what protections apply if it is in debt. The rules on forced prepayment meters and on whether a smart meter can be switched to prepayment without consent sit alongside the wider supplier conduct rules on prepayment and debt. The difference between a smart meter and a prepayment meter matters here, because a smart meter can be configured remotely into prepayment mode. For a household's energy independence, the key point is control over the payment method and over when supply can be interrupted.
What happens next
The Energy Bill amendments NC1 and NC2 were tabled for committee stage, with the End Fuel Poverty Coalition urging MPs to add their names in support4. The strengthened Code of Practice became part of suppliers' licence conditions, and the moratorium was lifted from November 2023 for suppliers meeting Ofgem's restart criteria3. Consumer Scotland has said it is too early to assess the Code's impact on supplier behaviour3.
Sources4 cited
- Energy consumer advice for Autumn/ Winter 2022 England and Wales, ofgem.gov.uk
- Courts continue to grant entry warrants to energy firms, endfuelpoverty.org.uk
- Response to the ESNZ Committee inquiry on fairness of customer energy bills (HTML) | Consumer Scotland, consumer.scot
- Forced PPM threats still a problem for vulnerable households, endfuelpoverty.org.uk