The first suppliers restarted involuntary prepayment meter (PPM) activity in January 2024, Ofgem has confirmed in a market compliance review published on 3 June 20261. The restart followed a halt agreed across the industry while the regulator reviewed and strengthened the rules governing involuntary installations and remote switches1.
Ofgem announced the Market Compliance Review (MCR) into involuntary PPM practices across domestic energy suppliers in January 2023, following allegations in the media and preliminary investigations opened towards the end of 20221. All suppliers agreed to stop involuntary installations and remote switches while the review took place1. Strengthened rules came into force in November 2023, and suppliers had to demonstrate they met the new requirements before restarting any involuntary activity, supported by a second independent audit verifying their readiness1.
"The first suppliers restarted involuntary PPM in January 2024"
All suppliers can now carry out involuntary PPM activity, although not all have chosen to do so1. British Gas has never been part of the PPM MCR, having been subject to a separate enforcement investigation, and does not currently carry out involuntary PPM activity1. Ofgem opened an enforcement investigation into Utilita's compliance with the rules in November 2024, and in May 2025 an ongoing investigation into OVO's prepayment meter practices was extended to include the PPM MCR; both suppliers were moved out of the review as a result1.
The review did not uncover widespread instances of inappropriate PPM installations1. A reassessment of customer accounts found that involuntary PPMs were installed when it was not safe and reasonably practicable in less than 2% of the accounts reviewed, or 1,925 instances out of more than 150,000 accounts1. Ofgem said most of these cases were due to poor quality assurance or human error1.
Suppliers have paid £7 million in compensation, written off £13 million in customer debt, and provided £55 million in support through hardship payments and debt relief1. Ofgem's update on the review published in May 2025 confirmed suppliers would pay £5.6 million in compensation1. Compensation levels set out by Ofgem are:
| Detriment | Compensation level |
|---|---|
| Process misalignment, data quality and record keeping | Goodwill payments of £40 to £60 paid by supplier on a case-by-case basis |
| Insufficient debt support | £250 |
| Unfair customer treatment | £250 |
| Vulnerability not considered | £500 |
| Inappropriate installation, switch or use of PPM | £1000 |
Suppliers were required to assess every customer with a PPM to confirm it was safe and reasonably practicable, and must now complete an assessment annually1. Involuntary PPM activity was reported to Ofgem on a weekly basis after the restart, with information on a sample of accounts, including system notes, communication attempts and bodycam or audio footage from site visits and calls, submitted and reviewed for compliance1.
Why it matters for households
Involuntary PPM installation is the mechanism by which a supplier can move a household onto prepayment without the household's agreement, usually in connection with debt. The restart means that route is available again across the sector, but only for suppliers that have shown they meet the strengthened rules and passed an independent audit of their readiness1. For a household, the practical effect is that the protections around that process, including the requirement to consider whether a meter is safe and reasonably practicable and to take vulnerabilities into account, now apply under rules that came into force in November 2023 rather than the earlier framework1. The review found procedural failings rather than widespread wrongful installations, and where standards were not met, compensation and debt write-off have followed1. Households that were involuntarily switched or had a PPM fitted and believe they should have been contacted can raise the matter with their supplier, and can refer an unresolved complaint to the Energy Ombudsman1. The supplier conduct on prepayment meters and customer debt rules sit alongside the supplier licensing and supplier failure framework that governs which company holds a licence to carry out this activity.
What happens next
Ofgem says suppliers' practices are monitored closely to ensure ongoing compliance, and that suppliers must now complete an annual assessment for every customer with a PPM1. The enforcement investigations into Utilita and OVO continue outside the MCR1. No further dates for those investigations have been reported.
Sources1 cited
- Market compliance review: prepayment meter installations, ofgem.gov.uk