Ofgem published the final report of its Market Compliance Review (MCR) into involuntary prepayment meter (PPM) practices on 3 June 2026, confirming that suppliers have paid £7,037,003 in compensation, written off £13 million of customer debt and provided £55 million in support through hardship payments and debt relief1.
The review was opened in January 2023, following allegations in the media and preliminary investigations opened towards the end of 2022, and covered involuntary PPM practices across domestic energy suppliers1. Ofgem said the review did not uncover widespread instances of inappropriate PPM installations, but found cases where suppliers' policies and procedures were not as robust as they should have been1. 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: 1,925 instances out of over 150,000 accounts1.
Ofgem set compensation levels according to the detriment identified. The report lists them as follows1:
| 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 |
The report states that suppliers have also written off £13 million worth of debt from customers' accounts where standards were not met, on top of £55 million of financial support provided directly to affected customers before the review was completed, in the form of hardship payments and debt write-off1. In its May 2025 update on the PPM MCR, Ofgem had confirmed that suppliers would pay £5.6 million in compensation1.
Ofgem said that all suppliers agreed to stop involuntary installations and remote switches of PPMs while it reviewed and strengthened the rules, and that the strengthened rules came into force in November 20231. Suppliers had to demonstrate they met the new requirements, supported by a second independent audit, before restarting any involuntary PPM activity; the first suppliers restarted involuntary PPM in January 20241. All suppliers can now carry out involuntary PPM activity, although not all have chosen to do so1.
"The review did not uncover widespread instances of inappropriate PPM installations."
Utilita was subject to an Enforcement investigation opened in November 2024 into its compliance with the rules around the installation and use of prepayment meters for domestic customers, and an ongoing Enforcement investigation into OVO's prepayment meter practices was extended in May 2025 to include the PPM MCR; the assessment of both suppliers was moved out of the MCR1. British Gas has never been part of the PPM MCR as it was subject to a separate Enforcement investigation1.
Why it matters for households
The report concerns customers who were switched to a prepayment meter, or had one fitted, without their consent. Ofgem's prepayment meter and vulnerable customer rules require suppliers to assess whether a PPM is safe and reasonably practicable for each customer, and to repeat that assessment annually1. The report gives the example of a customer with mobility issues who had to top up by cash and could not reach a top-up location; where the customer had told their supplier of those circumstances and the supplier proceeded, the PPM would have been considered unsafe1. Most of the cases where a PPM should not have been installed were due to poor quality assurance or human error, for example agents not acting in line with suppliers' procedures1.
For a household, the sums involved are compensation and debt relief already applied to affected accounts, not a scheme open to new claims. Ofgem states that customers who were involuntarily switched or had a PPM fitted and believe they should have been contacted but have not been should raise the matter with their supplier, and can use the supplier's complaints procedure and then the Energy Ombudsman if unresolved1. The complaints and redress route is the one the report sets out. The Ofgem role in setting and monitoring these rules is set out in the report's account of weekly reporting of involuntary PPM activity and review of account samples, including system notes, communication attempts and bodycam or audio footage from site visits and calls1.
What happens next
The report states that 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 is reported to Ofgem weekly, with information on a sample of accounts submitted and reviewed1. The Enforcement investigations into Utilita and OVO, and the separate Enforcement investigation concerning British Gas, remain outside the MCR; no outcomes for those investigations are given in the report1.
Sources1 cited
- Market compliance review: prepayment meter installations, ofgem.gov.uk