The Times reported earlier in March 2023 that a British Gas subcontractor used brutal methods to force-fit prepayment meters in the homes of vulnerable customers, according to Which?1. In response, all energy companies have said they will stop force-fitting prepayment meters in vulnerable customers' homes, the government has said, and magistrates have temporarily stopped signing off warrant applications1.
The temporary ban on forced installations of pay-as-you-go meters will continue until the energy regulator Ofgem announces new rules1. 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 20221. British Gas, Ovo Energy and Scottish Power installed 70% of those meters under warrant between them1. Between April and June 2022, more than 25,000 smart meters were switched from credit to prepayment mode1. Smart meters can be switched remotely, without anyone entering the home, though Ofgem says the same rules apply as for a physical meter1.
Under the rules set by Ofgem, a supplier must give seven days' notice for gas meters and seven working days' notice for electricity meters before installing a physical prepayment meter1. It must get a court warrant, and should only use warrants where proportionate to the amount owing1. Suppliers must not force-fit prepayment meters for people in vulnerable situations who do not want one1. Warrant costs passed to a customer can be up to £150, though those in a very vulnerable situation should not be charged1. Companies must now check previous prepayment installations and make amends, including compensation, where meters were wrongly installed or regulations were not followed1.
Why it matters for households
A prepayment meter changes how a home pays for energy: credit is bought in advance, and supply can stop when that credit runs out. For a household already in debt, that shifts the risk of running out of power onto the occupant. The rules on forced prepayment meter installations and the protections for vulnerable customers set out when a supplier may act and what notice it must give.
The remote switching of smart meters matters because it removes the need for a warrant and a home visit. Ofgem says suppliers must carry out appropriate assessments, including identifying any vulnerability, before switching a smart meter to prepayment mode for debt collection, and must give at least seven working days' notice1. Which? noted that some feel the warrant requirement is an extra legal protection that smart meter customers lack1. Households on prepayment and pay-as-you-go tariffs pay for energy in advance rather than by monthly direct debit, which changes both budgeting and the consequences of a missed top-up.
Which? reported the case of Susan and John Walker, who returned from holiday in December 2022 to a cold house with no electricity in Perthshire1. EDF Energy said the smart meter had been switched to prepayment two weeks earlier and had run out of credit1. EDF said it received a request to change the meter in September 2021, before the couple moved into the property, and made the change in December 20221. EDF told Which?: "Unfortunately, this mode change happened due to a rare individual error and it's not policy for mode changes to happen a significant amount of time after the original request"1. The couple accepted £180 compensation after an £80 electrician's bill and other costs1.
What happens next
Ofgem is asking people who have been switched to prepayment meters to share their experiences as part of a review of the market1. The online form, hosted by Citizens Advice, is open until 4 May 2023, and a dedicated phone line (0800 464 3374) is available1. Ofgem is investigating all suppliers' practices for forcing customers onto prepayment1. No date has been reported for the new rules that would end the temporary ban.