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New prepayment meter rules extend protections for vulnerable people

Ofgem, Energy UK and the government set out new rules suppliers should follow from November 2023, adding checks before any involuntary prepayment meter installation.

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

New rules that energy suppliers should follow from November 2023 extend protections for vulnerable people before a prepayment meter is installed without consent, according to energy consumer advice published by Ofgem, Energy UK and the Department for Energy Security and Net Zero1. The guidance states that more information on the rules suppliers should follow from November 2023 can be found under the heading "New prepayment meter rules extend protections for vulnerable people"1.

The same document records that energy suppliers agreed to stop force-fitting prepayment meters or switching smart meters to prepayment mode without consent in February 20231. It does not set out the individual checks the November 2023 rules require, and those details have not been reported in the material available1.

The advice also sets out changes to prepayment costs and support. From 1 April 2024, the standing charges for prepayment meters are reduced to the level of direct debit under the price cap1. New rules from April 2023 mean suppliers should offer £30 credit, the document states1. On price cap timing, it notes that since October 2022 the price cap has been updated every three months1.

On supplier conduct, the guidance records that from January 2024 EDF, Octopus, Scottish Power, Tru Energy, E.ON, Utility Warehouse, Utilita and Ovo Energy have met Ofgem's strict criteria1. It does not explain in the text what those criteria cover1.

"Energy suppliers agreed to stop force-fitting prepayment meters or switching smart meters to prepayment mode without consent in February 2023."
Energy consumer advice for Autumn/Winter 2022 England and Wales, Ofgem1
ItemDetail as given
Supplier agreement on force-fittingFebruary 20231
Rules suppliers should followFrom November 20231
£30 credit offer ruleFrom April 20231
Prepayment standing charge cut to direct debit levelFrom 1 April 20241
Suppliers meeting Ofgem's strict criteriaFrom January 2024: EDF, Octopus, Scottish Power, Tru Energy, E.ON, Utility Warehouse, Utilita, Ovo Energy1

Why it matters for households

For a household on a prepayment meter, the rules govern what happens before a supplier can move a customer onto one without their agreement, which is the point at which control over how energy is paid for changes hands. The February 2023 agreement and the November 2023 rules sit alongside the moratorium on involuntary prepayment meter installations and the wider prepayment and vulnerable customer rules.

The standing charge change matters because prepayment customers pay a fixed daily amount regardless of whether they use any energy, and the guidance warns that charges can build up during periods when no energy has been used1. From 1 April 2024 that daily charge is set at the direct debit level under the price cap1, which narrows one of the gaps between price cap rates by payment method.

For a home's energy independence, the practical effect is on the terms attached to the meter itself: how debt is recovered, what credit is offered, and whether a smart meter can be switched to prepayment mode remotely. The guidance points to repaying energy debt through a prepayment meter and to supplier conduct on prepayment meters and customer debt as the areas where these protections bite. Households wanting the background on how prepayment works, including topping up and emergency credit, are directed to the prepayment meters guide, and on consent specifically to whether a smart meter can be switched to prepayment without consent.

What happens next

The guidance gives no further dated steps on the November 2023 rules themselves1. It records that the legacy industry-run service supporting Radio Teleswitch (RTS) meters is being phased out and is planned to end 30 June 20251. It also states that the Welsh Government Warm Homes Nest scheme will come to an end at the end of March 2024, with the Welsh Government Warm Homes Scheme replacing it on Monday 1 April 20241, and that a scheme is intended to be delivered from 20251.

Sources1 cited
  1. Energy consumer advice for Autumn/ Winter 2022 England and Wales, ofgem.gov.uk