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All British domestic suppliers sign updated Code of Practice on involuntary prepayment meter installations

Ofgem has published an updated voluntary Code of Practice on involuntary prepayment meter installations, signed by all British domestic suppliers, with tougher oversight and new protections for high-risk households.

A newspaper on a kitchen table beside a model of rules and regulation

All British domestic energy suppliers have signed up to an updated Code of Practice covering prepayment meters (PPMs) installed under warrant or switched remotely without consent, Ofgem announced on 18 April 20231. The regulator said the Code sets out procedures suppliers must follow and will be subject to new detailed monitoring1.

The Code requires suppliers and their contractors to make at least 10 attempts to contact a customer before a PPM is installed, carry out a site welfare visit beforehand, and give a £30 credit per meter, or an equivalent non-disconnection period, on all warrant installations and remote switches1. Lead supplier representatives must wear audio or body cameras on all warrant installations or site welfare visits, with footage available for audit1. Suppliers must also re-assess the case once a customer has repaid debts owed, and must agree a move off PPM where a customer is clear of debt, wishes to move and passes any required credit checks1.

Involuntary installations are banned for the highest-risk customers. Ofgem lists households requiring continuous supply for health reasons, including dependence on powered medical equipment; people over 85 where there is no other support in the house; households with residents with severe health issues including terminal illnesses or a medical dependency on a warm home; and households where no one can top up the meter due to physical or mental incapacity1. The Code clarifies that every involuntary installation is always a last resort, when all other options have been exhausted1.

"Ofgem's new voluntary Code of Practice is a minimum standard that clearly sets out steps all suppliers must take before moving to a PPM."
Jonathan Brearley, CEO of Ofgem1

National Energy Action welcomed the protections but said many vulnerable groups still face uncertainty, with the threat of forced installation or remote switching "still hanging over them"2. Its chief executive, Adam Scorer, said Ofgem should be prepared to make further changes when the framework is reflected in licence conditions later in the year2. The charity set out the Code's two categories: high risk, where suppliers should not install, and medium risk, requiring case-by-case assessment, covering children under five, elderly people aged 75 and over, serious medical and mental health conditions, and temporary situations such as pregnancy or bereavement2.

Ofgem said the Code was developed with Citizens Advice, Energy UK and other stakeholders, and that it is already investigating suspected poor practice through a market-wide review1. The regulator also said it is looking at levelising costs between PPMs and direct debit payments1.

Why it matters for households

For a household facing debt, the Code changes what must happen before a meter is switched. Ten contact attempts and a welfare visit come first, and a £30 credit is applied at the point of installation or remote switch, reducing the immediate risk of going off supply1. For households in the highest-risk groups, an involuntary installation should not happen at all1.

The protections sit alongside existing rules on prepayment meters and vulnerable customer protections and the moratorium on involuntary prepayment meter installations, which remains in place while suppliers demonstrate readiness1. For a home already on a PPM, the requirement to re-assess once debts are repaid bears on whether a move from prepayment to credit is possible, and on how energy debt is repaid through a prepayment meter. The Code is voluntary at this stage; Ofgem is consulting on making it legally enforceable1.

What happens next

Suppliers should not restart involuntary PPM activity until they meet five conditions: a change plan and independent readiness assessment; an independent audit to identify wrongfully installed meters, with compensation and a return to a non-prepayment method offered; board attestation on both; no major concerns from the initial PPM Market Compliance Review; and regular monitoring data to Ofgem1. Ofgem will consult on reflecting the Code in licence conditions and guidance ahead of the coming winter and on an enduring basis1.

Sources3 cited
  1. Energy suppliers sign up to new Code of Practice on involuntary prepayment installations | Ofgem, ofgem.gov.uk
  2. National Energy Action: new prepayment meter code of practice is “much needed” but many still face “uncertainty” - National Energy Action (NEA), nea.org.uk
  3. Involuntary PPM, ofgem.gov.uk