The End Fuel Poverty Coalition wrote 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), according to a letter published on 1 November 20231. The letter was copied to the Minister for Consumer Energy and the Lord Chancellor1.
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 customers1. The Coalition also asks that Scottish Power and its subcontractors cancel all warrants sought so far and cease any current warrant applications1.
The letter follows reporting that Scottish Power was granted warrants allowing it to force entry into over a hundred homes to install prepayment meters, leaving vulnerable people with just £30 credit1. The Coalition states that at least two of those targeted had babies and toddlers, which it says is against Ofgem guidelines1. Scottish Power is among the firms Ofgem is considering as potentially in a fit state to restart forced transfers onto PPMs in the coming weeks1.
"Ban the practice of forced prepayment meters outright through legislation in the House of Commons."
The Coalition says it raised the issue repeatedly over the summer: a warning about energy firms' conduct on PPMs on 17 May, a formal consultation response on 13 July, and a letter to the current Secretary of State on 8 September asking again for a ban on forced PPMs and on other issues including energy debt1. It says the minister has still to reply to the September letter1. The Coalition adds that ministers rejected the opportunity to legislate during the passage of the Energy Act, leaving enforcement to voluntary codes of practice and licence conditions1.
Fiona Waters of the Warm This Winter campaign said the warrants showed vetting was not working1. 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. 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.
Why it matters for households
A forced prepayment meter changes how a home pays for energy. Credit is bought in advance, and when it runs out the supply can stop. The Coalition's letter cites cases where households were left with £30 credit1. For a household already in debt, that shifts the risk of a cold home onto the occupant rather than the supplier.
The current ban covers both physical forced installations and the remote switching of a smart meter into prepayment mode1. If it lapses, both routes reopen. The Coalition's request that it run until at least April 2024 would carry the protection through the winter, when loss of heating carries the greatest risk1.
The letter also questions the court process, describing a "cloak of secrecy" in magistrates courts and concerns about distant hearings and batch applications being nodded through1. Warrants are the legal mechanism by which entry is obtained, so the standard of scrutiny applied there determines whether vulnerable households are identified before installation. The Coalition's alternative proposals are a Help to Repay scheme and an Emergency Energy Tariff for vulnerable groups1. Details of either scheme have not been reported.
What happens next
The Coalition says the Secretary of State has not replied to its 8 September letter1. Ofgem is considering which firms may restart forced transfers onto PPMs in the coming weeks, with Scottish Power among them1. No date has been reported for a decision on that, or on the Coalition's requests.
Sources1 cited
- Ministers told to show leadership on prepayment meters scandal, endfuelpoverty.org.uk