Ofgem announced in early 2024 that some energy suppliers can start installing involuntary prepayment meters again1. The regulator's decision lifts a restriction that had prevented suppliers from moving households onto prepayment meters without their agreement.
The change means that, for the suppliers concerned, a household in debt can be switched to a prepayment meter without consent. The moratorium on involuntary prepayment meter installations had previously halted the practice across the industry. Ofgem's announcement does not apply to all suppliers; the guidance states that "some energy suppliers" may resume installations1. Which suppliers are covered, and the conditions attached to their return, have not been reported in the available material.
"In early 2024, Ofgem announced that some energy suppliers can start installing involuntary prepayment meters again."
The wider rules on prepayment meters and vulnerable customer protections remain in force, and the Ofgem framework governs how suppliers may act. Households wanting to know whether their supplier can force them onto a prepayment meter can read the guidance on whether a supplier can force you onto a prepayment meter and on smart meters switched to prepay without consent.
Separately, Ofgem has said around £240 million is owed back to customers from energy accounts that were closed while still in credit1. A refund may be due where old energy accounts were closed on moving home or switching suppliers during the past five years1.
Why it matters for households
A prepayment meter changes how a home pays for energy. Instead of a bill after use, the household pays in advance, and supply stops when the credit runs out unless emergency credit is used. For a household already in debt, an involuntary installation means the debt is typically recovered through the meter itself, at an agreed rate, rather than through a separate repayment arrangement. The guidance on repaying energy debt through a prepayment meter sets out how that works.
For energy independence, the practical effect is a shift in control. A prepayment meter gives the supplier a direct mechanism to recover debt and to interrupt supply, while the household's ability to manage timing and cost is narrowed. The prepayment meters guide covers topping up and emergency credit. Households on prepayment tariffs often pay different rates from those on direct debit, and the price cap sets the limits that apply.
The £240 million in closed-account credit is a separate matter: money already paid by households that may still be recoverable1. The British Gas Energy Trust is one route to grants for energy debt, and supplier conduct on prepayment meters and customer debt covers how suppliers are expected to behave.
What happens next
No further dates have been reported. The announcement confirms that installations may resume for some suppliers; the timing for individual households, and any expansion to other suppliers, has not been reported.
Sources1 cited
- Understanding Your Gas and Electricity Bills. StepChange, stepchange.org