All energy companies have said they will stop force-fitting prepayment meters in the homes of vulnerable customers, according to the government, and magistrates have temporarily stopped signing off warrant applications1. The halt follows reporting by The Times of the methods used by a British Gas subcontractor to force-fit prepayment meters in vulnerable customers' homes1.
The temporary ban on forced installations of pay-as-you-go meters will continue until the energy regulator Ofgem announces new rules. No date has been given for that. Ofgem chief executive Jonathan Brearley said the ban will lift "only when and if" firms follow the new code of practice1.
"I'm telling suppliers not to wait for the outcome of our reviews and to act now to check that prepayment meters have been installed appropriately, and if rules have been broken, offer customers a reversal of installations and compensation payments where appropriate. There will also be fines issued from Ofgem if the problem is found to be systemic."
Government figures show more than 65,000 prepayment meters were installed into homes under warrant in 2021, rising above 94,000 in 2022. British Gas, Ovo Energy and Scottish Power installed 70% of those between them1. Companies must now check previous prepayment installations and make amends, including compensation, where meters were wrongly installed or regulations were not followed1.
Force-fitting a physical meter is not the only route onto pay-as-you-go. Smart meters can be switched from credit to prepayment mode remotely, without anyone entering the home. Between April and June 2022, more than 25,000 smart meters were switched from credit to prepayment1. Ofgem says the rules are the same as for a physical switch, including appropriate assessments for vulnerability and at least seven working days' notice, but no court warrant is needed because no entry to the home is required1.
| Protection | Physical prepayment meter | Remote smart meter switch |
|---|---|---|
| Court warrant needed | Yes | No |
| Notice period | Seven days (gas), seven working days (electricity) | At least seven working days |
| Vulnerability assessment required | Yes | Yes |
Why it matters for households
A prepayment meter changes how a home pays for energy: credit is bought in advance, and supply stops when it runs out. For a household already in debt, that shifts the risk of running out of power onto the occupant. The rules on when a supplier can force a meter on a customer, and the protections for people in vulnerable situations, are set out in the prepayment and vulnerable customer rules, with the warrant process covered in disconnection, warrants and forced prepayment installation.
The remote route matters because a smart meter can move to prepayment mode without a visit, a warrant or, in the case reported, the householder's knowledge. Which? described a couple in Perthshire who returned from holiday in December 2022 to a cold house with no power after their smart meter had been switched to prepayment two weeks earlier; EDF said the change followed a request made in September 2021, before they moved in, and called it a rare individual error1. The practical questions for any household are covered in can my supplier force me onto a prepayment meter? and what is the moratorium on involuntary prepayment meter installations?.
What happens next
Ofgem is reviewing all suppliers' practices for forcing customers onto prepayment and is asking people with a prepayment meter, smart or traditional, to share their experiences through an online form hosted by Citizens Advice, open until 4 May 2023, or by phone on 0800 464 33741. The moratorium on forced installations continues until Ofgem publishes new rules; no date for that has been reported1.