Ofgem opened an enforcement investigation into Utilita's compliance with the rules around the installation and use of pre-payment meters (PPMs) for domestic customers, and published that fact in November 20241. The investigation sits alongside the regulator's wider Market Compliance Review (MCR) into involuntary PPM practices, which was launched in January 2023 after allegations in the media and preliminary investigations opened towards the end of 20221.
The MCR covered domestic energy suppliers other than those under separate enforcement action. An ongoing enforcement investigation into OVO's pre-payment meter practices was extended in May 2025 to include the PPM MCR, and the assessment of both OVO and Utilita was moved out of the review as a result1. 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's review found that involuntary PPMs were installed when it was not safe and reasonably practicable in less than 2% of the customer accounts reviewed, which it gives as 1,925 instances out of more than 150,000 accounts1. It states the review did not uncover widespread instances of inappropriate PPM installations, but that some suppliers' policies and procedures were not as robust as they should have been, which may have put customers at risk of harm1. Most cases where a PPM should not have been installed were attributed to poor quality assurance or human error, including agents not acting in line with suppliers' procedures and insufficient controls to prevent or stop this1.
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 PPM MCR 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 |
"In November 2024, Ofgem published that it had opened an Enforcement investigation into Utilita's compliance with the rules around the installation and use of pre-payment meters for domestic customers."
Why it matters for households
An enforcement investigation is a formal step, and Ofgem has not published its outcome for Utilita in this document. For a household, the practical effect of the wider review has been on how suppliers must assess a home before an involuntary PPM is fitted or a meter switched remotely. 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. Where a customer has a physical or mental disability that prevents them from using a PPM appropriately, for example mobility issues that stop them reaching a top-up location, Ofgem states a PPM would not be safe and reasonably practicable1.
The rules governing involuntary PPM installation were reinforced, coming into force in November 2023, and suppliers had to demonstrate they met the new requirements, supported by a second independent audit, before restarting any involuntary activity1. The first suppliers restarted involuntary PPM in January 2024, and all can now carry out the activity, although not all have chosen to do so1. Involuntary PPM activity was reported to Ofgem weekly, with sample account information including system notes, communication attempts and bodycam or audio footage reviewed for compliance1.
For a household, the sums involved indicate the scale of remediation rather than any entitlement: compensation, debt write-off and support payments were made to customers identified as affected during the review period1. Ofgem states that a customer who was involuntarily switched or had a PPM fitted and believes they should have been contacted but has not been should raise the matter with their supplier, and can escalate a complaint through the supplier's complaints procedure and then to the Energy Ombudsman if it cannot be resolved1. The prepayment meter rules and vulnerable customer protections set out the framework that applies, and the Energy Ombudsman and complaints routes cover what happens if a supplier does not resolve a complaint.
What happens next
The document does not give a timetable or outcome for the Utilita enforcement investigation, and no conclusion for it has been reported. Ofgem states that all suppliers can now carry out involuntary PPM activity, subject to the strengthened rules and continued monitoring1.
Sources1 cited
- Market compliance review: prepayment meter installations, ofgem.gov.uk