Ofgem has announced a new code of practice for suppliers covering the forced installation of prepayment meters, setting out how suppliers should deal with a customer facing an involuntary prepayment meter install1. National Energy Action, the fuel poverty charity, responded on 18 April 2023, saying the protections are much needed but that uncertainty remains for many vulnerable households1.
The code places vulnerable households into two categories. Under "High Risk, Do not install", suppliers should not fit a prepayment meter where no one in the household can access, operate or top up the meter because of physical or mental incapacity or for technical reasons1. This covers households needing a continuous supply for health reasons, including dependency on powered medical equipment such as heart or lung ventilators, dialysis equipment, stair lifts or hoists; refrigerated medication; dependency on carelines or health and wellbeing alarms; and a medical dependency on a warm home, for example because of emphysema, chronic bronchitis or sickle cell disease1. It also covers households with a very elderly occupant aged 85 or over without support in the house, and households with chronic, severe or terminal health conditions such as cancer, cardiovascular or respiratory disease and organ failure1.
The second category, "Medium Risk, Further assessment required by suppliers on a case-by-case basis", requires suppliers to consider a list of disabilities, characteristics and conditions alongside the precautionary principle when assessing whether an installation is safe and reasonably practicable1. That list includes children under five and elderly people aged 75 or over; other serious medical or health conditions such as neurological diseases (Parkinson's, Huntington's, cerebral palsy), respiratory conditions (COPD) and mobility limiting conditions (osteoporosis, muscular dystrophy, multiple sclerosis); serious mental or developmental health conditions such as clinical depression, Alzheimer's, dementia, learning difficulties and schizophrenia; and temporary situations such as pregnancy and bereavement1.
Adam Scorer, chief executive of National Energy Action, said the announcement was welcome but incomplete:
"While those over the age of 85, and some people with cold-related health conditions will welcome the new protections, many other vulnerable groups still face uncertainty, with the threat of forced installations or a remote switch to a prepayment meter still hanging over them. This should not happen if it causes them physical and mental harm. Ofgem needs to be hyper alert and actively monitor these risks. If necessary, they need to be prepared to make further changes when the new framework is reflected in licence conditions later this year."
Scorer also said energy costs have never been higher and that more vulnerable people are struggling to pay, facing cold, dark homes and increased debt1.
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 the balance runs out. For a household that depends on powered medical equipment, refrigeration for medication or a warm home, an involuntary installation or a remote switch carries risks that go beyond billing. The code draws a line at the highest-risk households, where suppliers should not install at all, and requires case-by-case assessment for a wider group. For households in the medium-risk group, the outcome is not automatic protection but a supplier decision, which is the uncertainty NEA points to. The rules sit alongside the wider framework of prepayment meters and vulnerable customer protections and the moratorium on involuntary prepayment meter installations. Households dealing with debt repayment through a meter, or with emergency credit, face separate arrangements again.
What happens next
The framework is to be reflected in licence conditions later this year, according to NEA, which said Ofgem should be prepared to make further changes at that point if necessary1. No further dates have been reported.