Energy firms signed up to a voluntary code of conduct dated 18 April 2023, designed to govern the forced installation of prepayment meters (PPMs)1. The code is due to come into force from 1 October 20231. It followed a period in which investigations by the i paper and The Times revealed energy firms using court warrants to enter homes and force vulnerable customers onto prepayment meters1.
The End Fuel Poverty Coalition argues the guidelines do not go far enough, saying they fail to protect highly vulnerable groups and fail to help tackle rising energy debt1. Anne McLaughlin, SNP MP for Glasgow North East and chair of the All Party Parliamentary Group on Prepayment Meters, said:
"The 18th April Voluntary Code of Conduct to prevent the forced installation of prepayment meters doesn't go far enough, so we need the power to properly regulate energy firms and safeguard vulnerable prepayment meter customers handed to the Secretary of State for Energy Security & Net Zero."
Separately, Ofgem consulted on new PPM rules which propose allowing energy firms to resume forcibly installing prepayment meters, while introducing protections for a select group of customers, described as households with members over 85 or under 52. Campaign group 38 Degrees helped over 20,000 people submit individual responses to that consultation, and 95% of those respondents told the regulator it should protect all households from forced prepayment meter installations2. More than 44,000 people have signed a 38 Degrees petition calling on Ofgem to ensure no one is forced onto a prepayment meter against their will2.
The Government has rejected backbench amendments to the Energy Bill which would give it the power to ban the forced transfer of households onto prepayment meters2. An amendment to give Ministers that power has been tabled by Anne McLaughlin1. Further debate on the Bill will now not take place until the autumn after running out of Parliamentary time, with the latest attempt expected at Report Stage, where Wera Hobhouse, MP for Bath, has tabled a fresh amendment2. The Energy Bill had its second reading in the House of Commons on 9 May1.
Polling published by the Warm This Winter campaign, of 2,193 people interviewed online between 4 and 5 May 2023, found 50% backed a permanent ban on the forced transfer of households onto prepayment meters to pay off energy debts, with a further 23% backing a ban while energy bills stay high, 11% opposed and 16% saying they did not know1. In the same polling, 36% said they were very concerned by the PPMs scandal and 26% somewhat concerned1.
Why it matters for households
A prepayment meter requires credit to be added before energy is used, and running out of credit can leave a home without gas or electricity until it is topped up. The rules on whether a supplier can force a prepayment meter on a household are central to a home's energy independence, because a forced transfer moves a household from paying in arrears to paying in advance. The protections for vulnerable customers set out who is meant to be shielded from that process, and the warrant process for forced installation is the route by which suppliers have entered homes. A smart meter switched to prepayment without consent can produce the same effect remotely. The End Fuel Poverty Coalition's official response to the Ofgem consultation cites expert reports on health problems potentially caused by PPMs switching off and leaving people in cold damp homes2. The coalition also points to plans put forward by charities including the Money Advice Trust for a Help to Repay scheme for energy debt, which it describes as a sustainable way to help households2.
What happens next
The voluntary code is due to come into force from 1 October 20231. Further debate on the Energy Bill will not take place until the autumn after running out of Parliamentary time, with a fresh amendment tabled at Report Stage by Wera Hobhouse MP2. Ofgem's consultation on new PPM rules has closed; the outcome has not been reported2.
Sources2 cited
- MPs urged to ban forced PPMs in Energy Bill, endfuelpoverty.org.uk
- Government show 'dereliction of responsibility' on prepayment meters, endfuelpoverty.org.uk