Ofgem's Code of Practice governing the involuntary installation of prepayment meters became part of Supplier Licence Conditions on 8 November 2023, the Welsh Government has confirmed in an update on its Tackling Fuel Poverty Plan1. The Centre for Sustainable Energy (CSE) reported that from that date the rules protect more households from having a prepayment meter installed, or a smart meter switched to prepayment mode, without consent2.
The change makes the code mandatory, so suppliers must follow it. CSE stated that failure to comply "could result in enforcement action and substantial fines for the supplier"2. Ofgem's definition covers remote switching: "references to the installation or removal of an Involuntary Prepayment Meter include the switching of any Electricity Meter to or from such a mode"2.
Suppliers must not install a prepayment meter in certain households, including those needing a continuous supply for health reasons such as dependence on powered medical equipment, households where all occupants are aged 75 or over with no other support in the house, households with children aged under 2, those with residents who have severe health issues or a medical dependency on a warm home, and households where no one can top up the meter due to physical or mental incapacity2. A further assessment is required where there are children aged 5 or under, other serious health conditions, or a temporary situation such as pregnancy or recent bereavement2.
Before enforcement, suppliers must make at least 10 attempts to contact a customer, carry out a site welfare visit, wear audio or body cameras during warrant installations or welfare visits, and give £30 credit per meter on warrant installations and remote switches as a short-term measure2. Once debts are repaid, suppliers must contact the customer to assess whether a prepayment meter remains suitable, and must allow a move off prepayment where the customer passes required credit checks2.
The Welsh Government said the temporary ban on involuntary installations in 2023, coupled with the code, "has reduced the over reliance on the installation of prepayment meters as a method of recovering arrears"1. It added that since 1 October 2023 prepayment meter households have paid lower standing charges than those on other payment methods, which it called "a welcome first step"1.
The End Fuel Poverty Coalition has said the rules did not go far enough for all campaigners3. It reports that 9 energy suppliers have resumed forced prepayment meter installations, with household energy debt standing at over £4.5bn4. It also states that the Ofgem investigation into British Gas, opened after reporting in February 2023, remains ongoing, and that the Chief Magistrate has launched a formal review of the warrant process in England4. Ofgem has not confirmed when that investigation will conclude4.
Why it matters for households
A prepayment meter requires payment before energy is used, and when credit runs out supply stops, which the Coalition describes as "self-disconnection"4. For a household, the licence conditions mean the route to a prepayment meter without consent now runs through defined checks: contact attempts, a welfare visit, recorded evidence and a credit on installation2. The protections also apply where a supplier would otherwise switch a smart meter remotely rather than send an engineer2. Households in the protected categories cannot be moved onto prepayment involuntarily at all2.
The practical effect on energy independence is that a home's ability to keep supply on no longer depends only on the supplier's discretion in debt recovery. The rules set a floor, and the Welsh Government credits them with reducing reliance on prepayment as an arrears tool1. Campaigners argue the floor is not high enough while warrant hearings remain, in their words, under a "cloak of secrecy", and while enforcement cases are unresolved4.
What happens next
The Welsh Government said it is developing updated fuel poverty estimates for October 2024, expected in the autumn, and will use them to develop interim targets based on EPC ratings1. Its crisis route runs until March 2026 and will be reviewed annually1. The Chief Magistrate's review of the warrant process in England is under way, and Ofgem's investigation into British Gas has no confirmed completion date4.
Sources4 cited
- Tackling fuel poverty: priority actions update HTML | GOV.WALES, gov.wales
- New protections from forced prepayment meter installation - Centre for Sustainable Energy, cse.org.uk
- Ministers urged to review nine nightmare energy rules, endfuelpoverty.org.uk
- Three years on - the forced prepayment meters scandal remains unresolved, endfuelpoverty.org.uk