The energy secretary, Grant Shapps, has urged Ofgem to turn words “into action” to ensure new industry rules designed to protect vulnerable people from being forced on to prepayment meters are properly enforced.
The Guardian revealed on Monday that all energy suppliers in Great Britain had signed up to a code of conduct banning them from putting the meters in the homes of people aged 85 and over as well as those with severe health conditions.
Suppliers have agreed to new guidelines for installing the devices when households have run up energy debt after an outcry over agents using court-approved entry warrants to break in to install them.
Energy firms to ban forced prepay meter installations in homes of over-85sRead more
Energy firms will now have to make at least 10 attempts to contact a customer and conduct a “site welfare visit” before a meter is installed.
Ofgem confirmed the move on Tuesday morning and said it would begin a consultation on whether to put the elements of the code into suppliers’ licence conditions.
The government and Ofgem have faced months of criticism from activists and opposition MPs for allowing forced installations under entry warrants that were being approved en masse during an energy and cost of living crisis that left an estimated 3.2 million people in cold and dark homes last year as they ran out of credit.
Shapps said: “This code of practice is a step in the right direction, with better protections for vulnerable households, increased scrutiny of supplier practices and redress measures that I have called for.
“I now want to see these words put into action as we have unfortunately learned that codes and rules alone are insufficient if they are not adhered to and enforced.
“Ofgem must make sure these commitments match what is happening on the ground and let this be a warning to suppliers – comply with this code and rectify your wrongful actions against these customers, or we will hold you to account.”
Suppliers have agreed not to fit meters for “high risk” customers aged 85 and over – if they do not have anyone to support them in the house – or anyone with a terminal illness or certain medical conditions.
Consumers who require a continuous supply for health reasons – such as dependence on powered medical equipment – cannot be cut off.
If there is no one in the house with the physical or mental ability to top up the meter then installations will also be prevented.
Debt agents and those working directly for suppliers will also be required to wear body cameras or audio equipment to ensure the rules are being followed.
skip past newsletter promotion
Sign up to Business Today
Free daily newsletter
Get set for the working day – we’ll point you to all the business news and analysis you need every morning
Enter your email address Enter your email address Sign upPrivacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.
after newsletter promotion
Ofgem said on Tuesday that those in a “medium risk” category would be assessed on a case by case basis. These include parents with children under five, those between 75 and 84, people with serious medical conditions and mobility issues, and those with serious mental health conditions. People in “temporary situations” such as pregnancy and recent bereavement would also be assessed, Ofgem said.
Jonathan Brearley, the chief executive of the regulator, said: “If and when involuntary [prepayment meters] are used, it must be as a last resort, and customers in vulnerable situations will be given the extra care and consideration they deserve, over and above the rules already in place, by suppliers – something that has clearly not always been happening.”
Dhara Vyas, the deputy chief executive of the industry trade body Energy UK, said: “While involuntary PPM installations are necessary to prevent debt building up further and to minimise additional costs for all customers, the new code of practice should give reassurance that it will be done only as a last resort, with the proper consideration and support, and only in circumstances where it is safe to do so.”
But Tom Marsland, the policy manager at the disability equality charity Scope, added “this process will still allow energy companies to install prepayment meters in some disabled households. We want to see the forced installation of meters and remote switching banned outright for disabled people.”
The forced installation of prepay meters was banned in February and Ofgem said that before the ban could be lifted suppliers would be assessed on how they would treat customers and would pay compensation to anyone who had a prepayment meter wrongfully fitted.
Customers who are forced on to a prepay meter either physically or through their smart meter being remotely switched on to prepayment mode will now be given £30 of credit initially to reduce the risk of them being immediately removed from supply.
