Search

Coalition first warns of return of PPMs scandal

The End Fuel Poverty Coalition has written to Energy Secretary Claire Coutinho warning that the prepayment meter scandal could return, and asking for forced installations to be banned outright.

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

The End Fuel Poverty Coalition has written to the Secretary of State for Energy Security and Net Zero, Claire Coutinho MP, calling for a legislative ban on the forced transfer of homes onto prepayment meters (PPMs). The letter, copied to the Minister for Consumer Energy and the Lord Chancellor, follows reporting that agents for Scottish Power obtained warrants to enter the homes of mothers with young children to install PPMs1.

The Coalition states that it first warned about energy firms' conduct on PPMs on 17 May, responded formally to an Ofgem consultation on 13 July, and wrote to the Secretary of State on 8 September asking for a ban and raising energy debt. It says the minister has still to reply to that letter1. Ministers rejected the opportunity to legislate during the passage of the Energy Act, leaving enforcement to voluntary codes of practice and licence conditions1.

The letter asks the Secretary of State to:

RequestDetail
Ban forced PPMsOutright, through legislation in the House of Commons
Extend the current banTo stay in place until at least April 2024, including switching of smart meters into PPM mode
Heightened monitoringOfgem to place Scottish Power under heightened monitoring for customer service and dealings with vulnerable customers
Cancel warrantsScottish Power and its subcontractors to cancel all warrants sought and cease current applications

Scottish Power is among the firms being considered by Ofgem as potentially fit to restart forced transfers onto PPMs in the coming weeks, according to the Coalition1. The Coalition says the Times investigation raises concerns that Scottish Power's checks and systems are not fit for purpose, and that this calls into question the whole system the regulator has in place1.

"Ban the practice of forced prepayment meters outright through legislation in the House of Commons."
End Fuel Poverty Coalition, in its letter to the Secretary of State1

Fiona Waters of the Warm This Winter campaign said Scottish Power was granted warrants allowing it to force entry into over a hundred homes and leave vulnerable people with just £30 credit, and that at least two of those targeted had babies and toddlers, which she said is against Ofgem guidelines1. Jan Shortt of the National Pensioners Convention said the NPC has been assured in writing that no energy provider currently meets the standards, and therefore no court should be signing warrants1. Jonathan Bean of Fuel Poverty Action said forced installations or smart meter switches to PPM mode are inherently risky as they can lead to loss of heating in winter1.

The Coalition also raises the "cloak of secrecy" it says magistrates courts operate under, and concerns that distant hearings and batch applications continue. It argues for alternatives to forced PPMs: a Help to Repay scheme and an Emergency Energy Tariff for vulnerable groups1.

Why it matters for households

A prepayment meter requires credit to be added before energy is used. Being moved onto one without consent, or having a smart meter switched remotely into PPM mode, changes how a household pays for gas and electricity and can leave a home without heating if credit runs out. The Coalition's account of warrants granted against households with young children goes to whether the safeguards that apply before a meter is forced on a home are being followed1.

The current ban on forced installations, which covers switching smart meters into PPM mode, is central to this. If it lapses, firms that Ofgem judges ready could resume forced transfers. The Coalition's request that it stay until at least April 2024 is a request about timing as much as principle1. For a household in debt, the practical difference between a forced meter and an agreed repayment arrangement is the difference between a supply that can be cut off by a lack of credit and one that cannot.

The letter also bears on how complaints and enforcement work. Ministers left enforcement to voluntary codes and licence conditions rather than legislation, so the protections a household can rely on rest on the regulator's Ofgem oversight and on the energy price cap arrangements that sit alongside it, rather than on a statutory ban1. Where a household believes it has been treated unfairly, the routes available are set out in Energy Complaints and Redress, and the wider framework is covered in the regulation and policy section.

What happens next

The Coalition says the minister has not yet replied to its 8 September letter1. It says Scottish Power is among the firms Ofgem is considering as potentially fit to restart forced transfers in the coming weeks, and that the current ban should remain until at least April 20241. No date has been reported for a decision by Ofgem on restarting installations, and no response from the Department for Energy Security and Net Zero has been reported.

Sources1 cited
  1. Ministers told to show leadership on prepayment meters scandal, endfuelpoverty.org.uk