Search

Coalition writes to Energy Secretary seeking ban on forced PPMs

The End Fuel Poverty Coalition has written to Energy Secretary Claire Coutinho asking her to legislate against forced prepayment meter installations and to keep Ofgem's current ban in place until at least April 2024.

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

The End Fuel Poverty Coalition wrote to the Secretary of State for Energy Security and Net Zero, Claire Coutinho MP, on 8 September 2023, asking for a ban on forced prepayment meters (PPMs) and for action on energy debt1. The letter was copied to the Minister for Consumer Energy and the Lord Chancellor, and the minister had not replied at the time of publication1.

The Coalition's letter sets out three requests. It asks the Secretary of State to ban forced prepayment meters outright through legislation in the House of Commons; to instruct Ofgem that the current ban, which includes switching smart meters into PPM mode, must stay in place until at least April 2024; and to ensure Ofgem places Scottish Power under heightened monitoring for all aspects of its customer service and its dealings with vulnerable customers, with Scottish Power and its subcontractors instructed to cancel all warrants sought so far and cease current applications1.

The letter follows reporting that agents for Scottish Power secured warrants to break into the homes of mothers with young children to force them onto PPMs1. Scottish Power is among the firms being considered by Ofgem as potentially being in a fit state to restart the forced transfer of homes onto PPMs in the coming weeks1. The Coalition said the investigation raises concerns that "the checks and systems Scottish Power have in place are not fit for purpose"1.

Warm This Winter campaign spokesperson Fiona Waters said Scottish Power were granted warrants allowing them to force their way 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 was against Ofgem guidelines1.

"Ministers must show further leadership and ban the forced transfer of homes onto prepayment meters, according to campaigners."
End Fuel Poverty Coalition1

The Coalition said ministers rejected the opportunity to legislate during the passage of the Energy Act, leaving enforcement to voluntary codes of practice and licence conditions1. It also raised concerns about the "cloak of secrecy" magistrates courts operate under, including distant hearings and batch applications1. Jan Shortt of the National Pensioners Convention said the NPC had been assured in writing that no energy provider currently meets the standards and therefore no court should be signing warrants1.

The Coalition has previously raised the issue with regulators and ministers: a warning about energy firms' conduct on PPMs on 17 May, and a formal consultation response to Ofgem on 13 July1. It argues for alternatives to forced PPMs, including a Help to Repay scheme and an Emergency Energy Tariff for vulnerable groups1.

Why it matters for households

A forced prepayment meter changes how a home pays for energy and how much control a household has over supply. Credit is loaded in advance, and when it runs out the supply can stop, which in winter means the loss of heating. The Coalition's letter states that some households were left with just £30 credit1. For a household already in debt, a forced PPM removes the ability to spread payment across a billing period and ties continued supply to topping up.

The current ban on forced installations, including remote switching of smart meters into PPM mode, is the main protection in place. The Coalition wants it extended to at least April 20241. Whether that protection continues, and whether it is replaced by legislation or left to licence conditions and voluntary codes, is the question the letter puts to the Secretary of State1. The energy price cap sets the rates a prepayment customer pays, but it does not determine whether a meter can be installed by force.

What happens next

The Secretary of State had not replied to the 8 September letter at the time of publication1. Ofgem is considering which firms may be permitted to restart forced transfers in the coming weeks, with Scottish Power among them1. The Coalition has asked for the ban to remain until at least April 20241. Complaints about supplier conduct can go through the energy complaints and redress process, and the Department for Energy Security and Net Zero holds the policy responsibility for any change in the law.

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