Ofgem published the findings of its phase 1 process evaluation of the involuntary prepayment meter (PPM) rules on 28 October 2026. The evaluation examines how the strengthened protections against involuntary PPM installations were developed and implemented, and what stakeholders believe is working well or less well1.
The regulator said early evidence suggests harms associated with PPM use have fallen, including a 36% reduction in severe self-disconnection and higher customer satisfaction among consumers in vulnerable situations1. It also found that the rules appear to have strengthened protections for consumers in vulnerable situations and reduced adverse PPM-related incidents, and reported positive stakeholder views of policy development, with stronger engagement than in previous policy processes, and positive views of monitoring and compliance arrangements1.
"Early evidence suggests harms associated with PPM use have fallen, including a 36% reduction in severe self-disconnection and higher customer satisfaction among consumers in vulnerable situations."
The evaluation also records problems on the supplier side. Ofgem said suppliers faced operational and cost challenges implementing the rules, contributing to variation in application and some evidence of precautionary behaviour and inconsistent use of vulnerability information1. On debt, it said household debt and arrears increased significantly following the February 2023 moratorium and have remained elevated since the introduction of the rules1. The document does not give figures for the debt increase, and no breakdown of the 36% reduction by nation, supplier or time period is reported in it.
| Finding | Ofgem's assessment |
|---|---|
| Severe self-disconnection | 36% reduction in early evidence1 |
| Protections for vulnerable consumers | Rules appear to have strengthened protections and reduced adverse PPM-related incidents1 |
| Customer satisfaction | Higher among consumers in vulnerable situations1 |
| Supplier implementation | Operational and cost challenges, variation in application, some precautionary behaviour and inconsistent use of vulnerability information1 |
| Household debt and arrears | Increased significantly after the February 2023 moratorium and remained elevated1 |
Why it matters for households
The rules govern when a supplier can move a household onto a prepayment meter without consent, and how vulnerability is taken into account. The evaluation's headline figure points to fewer severe cases of self-disconnection, where a meter runs out and supply stops, which is the main practical harm the prepayment meter moratorium and the surrounding protections for vulnerable customers were designed to address. For a household already on a prepayment meter, the finding that vulnerability information is used inconsistently between suppliers suggests the protection a home receives can still depend on which supplier it is with, a point covered in supplier conduct on prepayment and debt.
The debt finding matters for energy independence in a direct way. Ofgem links elevated arrears to the period after the February 2023 moratorium rather than to the rules themselves, but it says debt has stayed high since the rules took effect. Households repaying arrears through a meter have less headroom to keep the meter topped up, which is the mechanism covered in repaying energy debt through a prepayment meter. The evaluation does not report how many households are on involuntary PPMs, what the average arrears balance is, or how the 36% reduction was measured.
What happens next
Ofgem said it is currently undertaking a full impact evaluation of the rules1. That evaluation will assess, and where possible attribute, the extent to which the rules have reduced harms for protected consumers in vulnerable situations, affected debt and debt-related outcomes, and resulted in any wider or unintended effects1. No publication date for the impact evaluation is given in the document. Ofgem has also published a prepayment meter protections discussion paper, listed alongside the evaluation.